The RBI successfully auctioned state government securities for Andhra Pradesh and Delhi on October 6, 2026, raising ₹3,000 crore total. The auction included re-issues of securities maturing in 2035, 2042, 2033, and 2041.
RBI Auctions State Government Securities for Andhra Pradesh and Delhi
On October 6, 2026, the Reserve Bank of India conducted a yield/price-based auction of State Government Securities (SGS) for Andhra Pradesh and Delhi, raising a total of ₹3,000 crore. The auction included re-issues of existing securities: two tranches for Andhra Pradesh (2035 and 2042) and two for Delhi (2033 and 2041), each with a notified amount of ₹1,000 crore or ₹500 crore.
Detailed results indicate full subscription: Andhra Pradesh’s SGS 2035 re-issue (7.46%) had a cut-off price of ₹97.10 (yield: 7.9197%) and the 2042 re-issue (7.79%) at ₹98.17 (yield: 7.9971%). For Delhi, specific yields were not fully disclosed in the release, but issuance followed market-aligned pricing. Such SGS auctions allow state governments to meet fiscal requirements through market borrowing under the Market Borrowing Programme.
These transactions are relevant for public finance lawyers and those advising institutional investors. The successful auction reflects investor confidence in state debt instruments and has implications for interest cost management by state treasuries. Legal scrutiny may arise in contexts of fiscal responsibility laws or inter-state borrowing disputes.
