RBI Announces Rs 32,000 Crore Auction for Dated Securities

The Reserve Bank of India (RBI) has declared its plan to manage the sale of two dated securities amounting to a combined Rs 32,000 crore, scheduled for auction on August 29, 2025. The Government of India's initiative will see the amount split equally between 6.68% GS 2040 and 6.90% GS 2065, each valued at Rs 16,000 crore. Settlement is expected by September 1, 2025.

Additionally, the RBI noted that the government may opt to retain extra subscriptions up to Rs 2,000 crore for both securities. The auction will employ a multiple price method facilitated by the RBI's Mumbai Office. Bidders are required to submit offers electronically via the e-Kuber system on the specified date. Non-competitive bids have a submission window between 10:30 a.m. and 11:00 a.m., while competitive bids are accepted until 11:30 a.m. Announcements of results will follow on the same day, with payments due by September 1, 2025. Primary dealers can engage in underwriting additional competitive underwriting, with bids due from 09:00 a.m. to 09:30 a.m. through e-Kuber.

The RBI also revealed that the stocks are eligible for 'When Issued' trading from August 26 to August 29, 2025, under current guidelines. Competitive and non-competitive bidding facilities are available, reserving up to 5% of the notified amount for eligible investors. The minimum auction bid is Rs 10,000, incremented in multiples. Individual investors can participate via the non-competitive segment through the RBI's Retail Direct portal, with successful bids being allocated at the average yield or price from the competitive auction.

(With inputs from agencies.)