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The Reserve Bank of India has announced a major auction of State Government Securities worth ₹43,130 crore on March 2, 2026. Multiple states including Karnataka, Maharashtra, Tamil Nadu, and Gujarat will raise funds through yield-based and price-based auctions, with options for re-issues and greenshoe provisions.
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The Reserve Bank of India (RBI) will conduct a significant auction of State Government Securities (SGS) on March 2, 2026, via its E-Kuber system. A total of ₹43,130 crore will be raised by 13 states and union territories, with maturities ranging from 5 years to 30 years. The auction includes both fresh issuances and re-issues of existing securities.
Key Highlights
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States like Karnataka and Maharashtra lead the borrowing with multiple tranches across varied tenors, including re-issues of recently floated securities
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Tamil Nadu, Gujarat, and Madhya Pradesh are also raising substantial amounts, with greenshoe options available for Gujarat and Maharashtra
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The auction will follow both yield-based and price-based formats, depending on the security type
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Non-competitive bidding is available for individuals and institutions, capped at 10% of each stock, with a 1% limit per bid
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Competitive bids must be submitted between 10:30 AM and 11:30 AM, while non-competitive bids close at 11:00 AM on the auction day
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Successful bidders will make payments by March 4, 2026, with interest payable semi-annually on September 4 and March 4
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These securities qualify as eligible investments under Statutory Liquidity Ratio (SLR) norms and are permitted for ready forward transactions
This auction underscores the continued reliance of states on market borrowings to fund developmental and fiscal needs, while offering investors long-term opportunities in government-backed instruments.
Source: Reserve Bank of India, Press Release
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