Mumbai (Maharashtra) [India], October 28 : The Reserve Bank of India (RBI), on behalf of the Government of India, has announced the sale (re-issue) of four dated Government Securities for a total notified amount of Rs 32,000 crore.
The auction is scheduled to be held on October 31, 2025 (Friday), while the settlement will take place on November 3, 2025 (Monday).
According to the official statement by the RBI, the auction will include four Government Securities with varying maturities and coupon rates. The first security is 5.91 per cent Government Security 2028, maturing on June 30, 2028, for a notified amount of Rs 9,000 crore.
The second is the 6.28 per cent Government Security 2032, maturing on July 14, 2032, for Rs 11,000 crore. The third one is the 7.24 per cent Government Security 2055, maturing on August 18, 2055, for Rs 7,000 crore.
The fourth is the 6.98 per cent Government of India Sovereign Green Bond (SGrB) 2054, maturing on December 16, 2054, for a notified amount of Rs 5,000 crore.
The government will also have the option to retain an additional subscription of up to Rs 2,000 crore against each of these securities. This means the total amount raised could be higher depending on market demand.
The auction will be conducted through the Reserve Bank of India, Mumbai Office, Fort, under the multiple price method.
Both competitive and non-competitive bids must be submitted electronically through the RBI's Core Banking Solution (e-Kuber system).
Competitive bids are generally submitted by large financial institutions that specify the yield or price at which they wish to buy the securities. Allotment in this category depends on the cut-off yield determined during the auction.
On the other hand, non-competitive bids are meant for smaller investors and eligible institutions. They do not need to quote a yield or price; instead, they receive securities at the weighted average price decided in the auction.
The RBI stated that the results of the auction will be announced on the same day, and successful bidders must make payment by November 3, 2025.
Bids for underwriting the Additional Competitive Underwriting (ACU) portion can be submitted by Primary Dealers between 9:00 a.m. and 9:30 a.m. on the day of the auction.
Additionally, the RBI announced that the stocks will be eligible for "When Issued" trading from October 28 to October 31, 2025. This allows investors to trade the securities before their actual issuance, providing early price discovery.
Government securities (G-Secs) are tradable debt instruments issued by the central or state governments to raise funds for public expenditure. These instruments are considered among the safest investment options as they are backed by the sovereign guarantee of the Government of India.
Typically, G-Secs are fixed-income investments, providing investors with a regular income stream through interest payments, while the principal amount is returned upon maturity.
The funds raised through these bonds are used by the government to finance infrastructure projects, developmental programs, or other public expenditures.
In exchange, investors receive a fixed rate of interest until maturity, making G-Secs a preferred investment for risk-averse investors seeking stability and assured returns.
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