RBI announces Rs 28,000 Cr auction of GoI securities

The Reserve Bank of India (RBI) on Monday announced the auction of two Government of India (GoI) securities with a total notified amount of Rs 28,000 crore. The auction is scheduled to be conducted on Friday, October 10, with settlement set for Monday, October 13, 2025.

According to the RBI notification, the auction will include the re-issue of the 6.68 per cent GS 2040 worth Rs 16,000 crore and the 6.90 per cent GS 2065 worth Rs 12,000 crore. The government has the option to accept additional subscriptions of up to Rs 2,000 crore for each security.

The sale will be conducted through the RBI’s Mumbai office using its Core Banking Solution e-Kuber system. The auction will follow a multiple-price method, allowing both competitive and non-competitive bids. Non-competitive bids will be accepted from 10:30 a.m. to 11:00 a.m. on October 10, while competitive bids will be received between 10:30 a.m. and 11:30 a.m. on the same day. Results of the auction will be announced on October 10, and successful bidders are required to make payments by October 13.

Primary Dealers can submit bids for underwriting the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the day of the auction. The securities will also be eligible for “When Issued” trading from October 7 to October 10, 2025.

In multiple price-based auctions, successful bids are accepted at the respective quoted yield or price for the security. In uniform price-based auctions, bids are accepted at the cutoff yield or price determined in the auction. The auction will be yield-based for new securities and price-based for reissued securities. In the case of Floating Rate Bonds (FRBs), the auction will be spread-based for new securities and price-based for reissued ones. Bidders for new FRBs must quote the spread in percentage terms.

The securities will be issued in a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter. Individual investors can also participate through the non-competitive scheme via the RBI’s Retail Direct portal. While investors may submit multiple competitive bids, the total amount of bids by any individual cannot exceed the notified amount of the auction.

The RBI retains full discretion to accept or reject any or all bids, either wholly or partially, without assigning any reason.

This auction represents a routine issuance of government securities aimed at managing the government’s borrowing programme and providing investment avenues to individual and institutional investors alike.