The Reserve Bank of India has announced an auction of State Government Stocks for an aggregate face value of ₹24,800 crore. The auction will be held on July 14, 2026, through the RBI’s Core Banking Solution, E-Kuber.
The stocks are being offered by nine state governments. The sale includes both new securities, where the yield will be decided through auction, and re-issues of earlier State Government Securities, where bidding will be on price.
States and amounts in the auction
According to the RBI press release, the following state governments will raise funds through the auction:
- Andhra Pradesh: ₹3,800 crore, including a 10-year stock and re-issues of 7.65% Andhra Pradesh SGS 2043 and 7.81% Andhra Pradesh SGS 2056.
- Gujarat: ₹2,000 crore, through 9-year and 12-year stocks.
- Maharashtra: ₹10,600 crore, through re-issues of securities maturing in 2031, 2034, 2039, 2044, 2049 and 2054.
- Meghalaya: ₹300 crore, through a 12-year stock.
- Mizoram: ₹100 crore, through a 15-year stock.
- Punjab: ₹2,000 crore, through re-issues of 7.55% Punjab SGS 2033 and 7.92% Punjab SGS 2044.
- Rajasthan: ₹1,500 crore, through re-issues of 7.57% Rajasthan SGS 2035 and 7.81% Rajasthan SGS 2049.
- Tamil Nadu: ₹2,000 crore, through 8-year and 15-year stocks.
- Telangana: ₹2,500 crore, through re-issues of 7.70% Telangana SGS 2037 and 7.65% Telangana SGS 2055.
Maharashtra has the largest notified amount in this auction at ₹10,600 crore. Andhra Pradesh has notified ₹3,800 crore, while Telangana has notified ₹2,500 crore.
Bidding schedule
The auction will take place on July 14, 2026. Competitive bids must be submitted on E-Kuber between 10:30 a.m. and 11:30 a.m. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m.
The RBI said eligible individuals and institutions can get allotment under the non-competitive bidding facility up to 10 per cent of the notified amount of each stock. For a single bid in each stock, the limit is one per cent of that stock’s notified amount. Individual investors may also place non-competitive bids through the Retail Direct portal.
The central bank has said that physical bids will be accepted only if there is a system failure. In such a case, bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
Bid and allotment rules
Bidders have to quote the expected yield per annum or price, as applicable, up to two decimal places. More than one competitive bid can be submitted at the same or different yield or price levels. However, the total bids submitted by one bidder cannot exceed the notified amount for the relevant state.
The RBI will decide the maximum yield or minimum price at which bids will be accepted. The stocks will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 after that.
The results of the auction will be announced on July 14, 2026. Successful bidders will have to make payment during banking hours on July 15, 2026, at Mumbai and at the respective RBI regional offices.
Interest payment and regulatory treatment
For new State Government Stocks, the interest rate will be determined in the auction. Interest on new stocks will be paid half-yearly on January 15 and July 15 every year until maturity.
For re-issued securities, the interest rate will remain the rate decided on the original issue date of that government stock. Interest on these securities will also be paid on a half-yearly basis until maturity.
The stocks will be governed by the Government Securities Act, 2006, and the Government Securities Regulations, 2007. The RBI also said investment in these State Government Stocks will count as eligible investment in government securities for banks’ Statutory Liquidity Ratio requirement under Section 24 of the Banking Regulation Act, 1949. The stocks will also qualify for the ready forward facility.
Source: Reserve Bank of India Press Releases.