The auction of state government securities by the RBI for 2026 has been announced, with a total face value of ₹21,350 crore being offered across various States and Union Territories. This auction includes new yields and re-issues of existing securities with maturities ranging from 5 to 26 years. The auction of state government securities affects investors, intermediaries, and market participants dealing with government bonds and debt instruments. Details on tenor, auction types, and amounts offered are key considerations for those participating in the primary market for these securities.
Quick Summary
- RBI to auction State Government Securities worth ₹21,350 crore face value
- Auction includes yield-based and price-based re-issues across 13 States/UTs
- Tenors range between 5 and 26 years for different securities
- Investors can access new issues and re-issues with varying coupon rates
What SEBI announced
RBI has announced the auction of State Government Securities amounting to ₹21,350 crore face value scheduled for July 3, 2026. The auction involves various States and Union Territories offering securities through two types of auctions: yield-based and price-based re-issues. Several securities being re-issued carry coupons ranging from 7.79% to 8.07%, with tenors extending up to 26 years.
Who is affected
This auction impacts investors in State Government Securities, intermediaries such as primary dealers and brokers, and other market participants engaged in government bond markets. Buyers from retail investors to institutional players will have access to these offerings. The States and UTs listed are Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Sikkim, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.
What changes for investors, intermediaries or market participants
Investors can participate in this auction to acquire fresh issuance and reissued State Government Securities with varying maturities and coupon rates. Introduction of price-based auctions for re-issues of certain securities offers alternative bidding options compared to traditional yield-based auctions. Intermediaries will facilitate bidding and settlement in line with the announced parameters, with securities being issued or re-issued on specified coupon and tenor terms.
Compliance or operational impact
Market participants must adhere to auction modalities specified by RBI, including submitting bids in yield or price format as applicable. Operational systems must be ready to handle multiple simultaneous offerings across several States with different tenors. Compliance with RBI’s auction procedures remains mandatory, though no further compliance changes are outlined in the announcement.
State-wise auction amounts and tenure details for July 3, 2026
| State/UT | Amount to be raised (₹ Crore) | Tenor (Year) | Type of Auction |
|---|---|---|---|
| Bihar | 800 | 09 | Yield |
| Bihar (Re-issue) | 1200 | – | Price |
| Chhattisgarh | 250 | 09 | Yield |
| Chhattisgarh | 250 | 16 | Yield |
| Himachal Pradesh | 700 | 13 | Yield |
| Jammu and Kashmir | 500 | 12 | Yield |
| Jammu and Kashmir (Re-issue) | 500 | – | Price |
| Jharkhand | 300 | 07 | Yield |
| Kerala | 800 | 07 | Yield |
| Kerala | 1000 | 13 | Yield |
| Madhya Pradesh | 1600 | 18 | Yield |
| Madhya Pradesh (Re-issue) | 2000 | – | Price |
| Manipur | 250 | 14 | Yield |
| Sikkim | 200 | 13 | Yield |
| Telangana (Re-issue) | 1500 | – | Price |
| Telangana (Re-issue) | 1500 | – | Price |
| Uttar Pradesh | 1000 | 06 | Yield |
| Uttar Pradesh | 1000 | 16 | Yield |
| Uttar Pradesh (Re-issue) | 1000 | – | Price |
| Uttarakhand (Re-issue) | 300 | – | Price |
| West Bengal | 1000 | 05 | Yield |
| West Bengal | 1500 | 18 | Yield |
| West Bengal | 2200 | 26 | Yield |
Key date or circular/order detail
The auction date is July 3, 2026. The announcements also detail specific securities being re-issued, such as 7.92% Bihar SGS 2051 issued on April 15, 2026, and 7.97% Telangana SGS 2043 issued on April 8, 2026, among others. Full bidding details, schedules, and circular references should be checked from the official RBI notification.
What investors should know
Investors should note the large aggregate value of ₹21,350 crore in State Government Securities on offer, providing varied options across tenors of 5 to 26 years. Prices and yields will be determined through the auction process, offering both new issues and re-issues of existing securities. Participation requires understanding bid types—yield or price-based—along with maturity profiles and coupon rates. Detailed terms and conditions must be referred to in the official circular.
Frequently Asked Questions
What types of auctions are being conducted for these state government securities?
The auction includes both yield-based and price-based types. Yield auctions determine the price from a set yield, while price auctions permit bidding at specific prices, especially for re-issues of certain securities.
Which States are participating in the state government securities auction on July 3, 2026?
Thirteen States and UTs are participating: Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Sikkim, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.
What is the total amount being raised through this auction of State Government Securities?
The aggregate face value of State Government Securities being auctioned is ₹21,350 crore.
What tenors are offered for the securities in this auction?
Tenors vary from 5 years to 26 years, depending on the specific State Government Security being offered.
Where can investors find detailed bidding guidelines and eligibility conditions for this auction?
The detailed rules and eligibility criteria should be checked from the official RBI auction notification or circular, as these details are not provided in the announcement summary.
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Source note: This article is based on RBI announcement dated Jul 03, 2026. Readers should refer to the official source for detailed rules, eligibility, deadlines or compliance requirements. View original source.
