RBI to auction dated securities worth Rs 28,000 crore on September 12

New Delhi [India], September 9 (ANI): The Government of India has announced the sale (re-issue) of two dated securities worth Rs 28,000 crore through auction, to be conducted by the Reserve Bank of India (RBI) on September 12, 2025.

According to an official notification, the government will re-issue 6.01 per cent Government Security (GS) 2030 and 7.24 per cent GS 2055 for a total notified amount of Rs 28,000 crore.

Of this, Rs 15,000 crore will be raised through the 6.01 per cent GS 2030, which is due for repayment on July 21, 2030, and Rs 13,000 crore through the 7.24 per cent GS 2055, maturing on August 18, 2055.

The government has also kept the option to retain additional subscription of up to Rs 2,000 crore against each security.

The auction will take place at RBI's Mumbai office under the multiple price method. Competitive bids can be submitted between 10:30 a.m. and 11:30 a.m. on September 12, while non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m.

The results will be declared the same day. Successful bidders will be required to make payment on September 15, 2025.

Competitive bids are placed mainly by large institutions, where they quote the yield or price at which they want to buy, and allotment depends on the cut-off decided in the auction.

Non-competitive bids, meant for small investors and eligible institutions, do not require quoting any yield or price; instead, securities are allotted at the average auction price.

Primary Dealers can submit their bids for underwriting the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on September 12.

The securities will also be eligible for "When Issued" trading from September 9 to September 12.

The RBI has clarified that both competitive and non-competitive bids should be submitted electronically through its Core Banking Solution (e-Kuber system). Physical bids will not be accepted, except in case of extraordinary circumstances like system failure.

The allotment for non-competitive bids will be made at the weighted average rate of yield/price emerging from the competitive bids. RBI will decide the cut-off yield or price and has the discretion to accept or reject bids fully or partially. (ANI)

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