Several state governments, including Assam and Bihar, are auctioning state development loans worth ₹31,200 crore. Auctions to be conducted via RBI’s e-Kuber platform using yield and price methods.
State Governments Launch ₹31,200 Crore SGL Auction
Auction of State Government Securities (SGS) worth ₹31,200 crore (face value) has been notified by multiple states. Participating governments include Assam, issuing fresh stock, and Bihar, conducting re-issuances of existing securities—7.71% SGS 2044 and 7.76% SGS 2051.
The auction format combines yield-based and price-based methods, reflecting diverse borrowing strategies. These sales are conducted under the Market Borrowing Programme of state governments, facilitated by the Reserve Bank of India through the e-Kuber platform. All settlements follow standard delivery-versus-payment (DVP) norms.
Investors and legal advisors must review the credit risk profiles of issuing states and assess secondary market liquidity. The auctions underscore fiscal federalism dynamics and the growing depth of sub-sovereign bond markets in India. Legal documentation for such instruments falls under public debt management rules governed by the RBI Act and state fiscal responsibility statutes.