New Delhi: The Reserve Bank of India (RBI) has announced that the Government of India will auction dated government securities worth ₹32,000 crore on July 10 as part of its market borrowing programme. The proceeds will help finance the government’s expenditure, with settlement of the securities scheduled for July 13.

The auction will comprise the re-issue of two existing government securities and will be conducted through the RBI’s Mumbai office using the multiple price auction method.

Two government securities to be re-issued

According to the RBI, the auction will include:

  • 6.36 per cent Government Security (GS) 2031 for a notified amount of ₹21,000 crore.
  • 7.71 per cent Government Security (GS) 2066 for a notified amount of ₹11,000 crore.

The government has also retained the option to accept additional subscriptions of up to ₹2,000 crore against each security, if required.

Bidding schedule announced

The RBI said both competitive and non-competitive bids will be submitted electronically through the e-Kuber platform on July 10.

The bidding schedule is as follows:

  • Non-competitive bids: 10.30 am to 11.00 am
  • Competitive bids: Up to 11.30 am

The auction results will be announced on the same day.

The central bank also said Primary Dealers may submit bids for the Additional Competitive Underwriting (ACU) portion between 9.00 am and 9.30 am on the day of the auction.

Securities eligible for ‘When Issued’ trading

The RBI said both securities are eligible for ‘When Issued’ (WI) trading from July 7 to July 10.

The WI market enables investors to trade securities before their formal issuance, helping in price discovery and improving market liquidity.

Retail investors can participate

The government securities will be issued with a minimum investment of ₹10,000.

Eligible retail investors and institutions can participate under the non-competitive bidding segment.

Individual investors can also invest directly through the RBI Retail Direct portal, which allows retail participation in government securities without the need for intermediaries.

Part of government’s borrowing programme

The auction forms part of the Government of India’s market borrowing programme, under which funds are raised by issuing sovereign debt instruments to meet fiscal requirements.

Government securities are generally regarded as among the safest investment instruments in the domestic market because they are backed by the sovereign guarantee of the Government of India.

The RBI conducts such auctions periodically on behalf of the central government to facilitate borrowing while ensuring an orderly functioning of the government securities market.