The Reserve Bank of India has announced an auction of State Government Stocks for a total notified amount of ₹15,300 crore. The auction will be held on Tuesday, August 11, 2026, through RBI’s Core Banking Solution platform, E-Kuber.
The securities are being offered by six state governments: Andhra Pradesh, Gujarat, Maharashtra, Meghalaya, Punjab and Rajasthan. The stocks include both new issues, where the coupon will be decided through the auction, and re-issues of earlier State Government Securities.
State-wise securities on offer
Andhra Pradesh has offered securities worth ₹3,800 crore. This includes ₹1,000 crore through a 9-year yield-based auction, ₹1,200 crore through re-issue of 7.65% Andhra Pradesh SGS 2043, and ₹1,600 crore through a 30-year yield-based auction.
Gujarat will raise ₹2,500 crore through two price-based re-issues. These are ₹1,000 crore of 7.38% Gujarat SGS 2035 and ₹1,500 crore of 7.51% Gujarat SGS 2038. Both securities were originally issued on July 15, 2026.
Maharashtra has the largest notified amount in this auction, at ₹5,600 crore. The state will offer ₹2,400 crore of 7.55% Maharashtra SGS 2034, ₹2,200 crore of 7.77% Maharashtra SGS 2044 and ₹1,000 crore of 7.79% Maharashtra SGS 2054. All three are price-based re-issues of securities originally issued on April 22, 2026.
Meghalaya will raise ₹400 crore through the re-issue of 7.72% Meghalaya SGS 2038. Punjab has notified ₹1,500 crore, including ₹500 crore through re-issue of 7.55% Punjab SGS 2033 and ₹1,000 crore through a 17-year yield-based auction. The Punjab 17-year security also carries an additional borrowing, or greenshoe, option of ₹500 crore.
Rajasthan will raise ₹1,500 crore. This includes ₹700 crore through re-issue of 7.57% Rajasthan SGS 2035 and ₹800 crore through re-issue of 7.81% Rajasthan SGS 2049.
Bidding schedule
Both competitive and non-competitive bids must be submitted electronically on the E-Kuber system on August 11, 2026. Competitive bids will be accepted between 10:30 a.m. and 11:30 a.m. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m.
Under the non-competitive bidding facility, up to 10% of the notified amount of each stock may be allotted to eligible individuals and institutions. A single bid under this route is subject to a maximum limit of 1% of the notified amount of that stock. Individual investors can also use the Retail Direct portal for non-competitive bids.
Physical bids will be accepted only if there is a system failure. In that case, bids must be submitted to the Public Debt Office in the prescribed form before the auction timing ends.
How bids will be decided
The RBI will determine the maximum yield or minimum price at which bids are accepted. Bidders quoting yield or price must express it up to two decimal points. An investor may submit more than one competitive bid at the same or different yields or prices, but the total bids by a bidder must not exceed the notified amount for each state.
The stocks will be issued for a minimum nominal amount of ₹10,000 and in multiples of ₹10,000 after that. The auction results will be announced on August 11, 2026. Successful bidders will make payment during banking hours on August 12, 2026, at Mumbai and at the respective RBI Regional Offices.
Interest and regulatory treatment
New State Government Stocks will carry interest at the rates determined by RBI in the auction. For these new stocks, interest will be paid half-yearly on February 12 and August 12 each year until maturity.
For re-issued Government Stocks, interest will be paid at the rate fixed on the original issue date of the respective security, on a half-yearly basis until maturity. The stocks will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007.
Investment in these State Government Stocks will be treated as eligible investment in Government Securities by banks for Statutory Liquidity Ratio purposes 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.