RBI to auction Rs 44,500 crore State Government Securities on Feb 24

The Reserve Bank of India RBI will conduct an auction of State Government Securities SGS on February 24 aggregating Rs 44550 crore according to an official notification issued by the central bankAs many as 16 State Governments Andhra Pradesh Bihar Chhattisgarh Goa Gujarat Haryana Karnataka Kerala Maharashtra Nagaland Punjab Rajasthan Sikkim Tamil Nadu Uttar Pradesh and West Bengal are set to raise funds through a mix of fresh issuances and reissuesThe securities span maturities ranging from three years to 28 years reflecting varied borrowing strategies aligned with states fiscal requirementsSeveral states are reissuing existing securities including dated stocks of Chhattisgarh 759 per cent SGS 2046 Haryana 773 per cent SGS 2045 Karnataka 725 per cent SGS 2033 Tamil Nadu 712 per cent SGS 2032 and 744 per cent SGS 2055 Uttar Pradesh 724 per cent SGS 2033 and 759 per cent SGS 2041 and West Bengal 774 per cent SGS 2048 Select states such as Gujarat and Maharashtra have also indicated additional borrowing through greenshoe optionsThe auction will be conducted on the RBIs Core Banking Solution EKuber platformCompetitive bids can be submitted between 1030 am and 1130 am on February 24 while noncompetitive bids will be accepted between 1030 am and 1100 amEligible individuals and institutions may participate under the NonCompetitive Bidding Facility Retail investors can also bid through the RBI Retail Direct portalUp to 10 per cent of the notified amount of each stock will be reserved for eligible participants under the noncompetitive segment subject to a maximum of 1 per cent per stock for a single bid Bidders may submit multiple competitive bids at different yields or prices provided the aggregate amount does not exceed the notified amount for the respective stateThe cutoff yield or minimum price will be determined by the RBI based on bids received Securities will be issued in a minimum denomination of Rs 10000 and in multiples thereofThe auction results will be announced on the same day and successful bidders will be required to make payments on February 25 2026 during banking hours at Mumbai and the respective regional offices of the RBIThe newly issued stocks will carry interest at rates determined in the auction and will pay interest semiannually on August 25 and February 25 until maturity Reissued securities will carry the original coupon rateInvestments in these securities qualify for Statutory Liquidity Ratio SLR purposes and are eligible for the ready forward facility under prevailing regulations