RBI to auction Rs 32,000 crore worth of government securities on August 29

According to a press release on Monday, the notified amount will be equally divided between two securities, of 6.68 per cent Government Security (GS) 2040 and 6.90 per cent GS 2065, each worth Rs 16,000 crore. The settlement date for the auction is September 1, 2025.

The central bank stated that the government will have the option to retain additional subscriptions of up to Rs 2,000 crore against both securities. The auction will be conducted by the RBI Mumbai Office using the multiple price method.

"Both competitive and non-competitive bids for the auction should be submitted electronically on the RBI's Core Banking Solution (e-Kuber) system on August 29, 2025," the statement said.

Non-competitive bids can be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids can be placed until 11:30 a.m. Results will be announced the same day, and successful bidders to make payments by September 1, 2025.

Underwriting of the Additional Competitive Underwriting (ACU) portion can be undertaken by primary dealers, with bids to be submitted between 09:00 a.m. and 09:30 a.m. on the same day through the e-Kuber system.

The central bank further informed that the stocks will be eligible for "When Issued" trading from August 26 to August 29, 2025, in line with existing guidelines.

Investors can participate through both competitive bidding and the non-competitive bidding facility, which reserves up to 5 per cent of the notified amount for eligible individuals and institutions.

The minimum bid size for the auction will be Rs 10,000 and in multiples thereof. Individual investors can also participate in the non-competitive segment through the RBI's Retail Direct portal.

The successful bids under the non-competitive segment will be allotted at the weighted average rate of yield or price emerging from the competitive auction. (ANI)