The Government of India (GoI), in collaboration with the Reserve Bank of India (RBI), has announced the re-issuance of two Government Securities (G-Secs) through a price-based auction scheduled for April 4, 2025. This move reflects the government’s ongoing efforts to manage public debt efficiently while promoting transparency in the financial markets. The auction will include the “6.64% Government Security 2027” for a notified amount of ₹6,000 crore and the “6.79% Government Security 2034” for ₹30,000 crore. Additionally, the government can accept up to ₹2,000 crore in extra subscriptions for each security, underscoring its flexibility in meeting funding requirements.
The auction will be conducted electronically via RBI’s Core Banking Solution platform, E-Kuber. This system ensures seamless participation from eligible entities, including commercial banks, insurance companies, and primary dealers. Competitive bids can be submitted between 10:30 AM and 11:30 AM, while non-competitive bids are reserved for retail investors and institutions under a special scheme—will be accepted from 10:30 AM to 11:00 AM. Notably, up to 5% of the notified amount is earmarked for non-competitive bidders, fostering broader participation and financial inclusion.
The results of the auction will be announced on the same day, April 4, 2025, followed by payment by successful bidders on April 7, 2025. These securities will also be eligible for “When Issued” trading under RBI guidelines, enabling market participants to trade them before their issuance date. This mechanism enhances liquidity and provides investors with greater flexibility.
This auction aligns with GoI’s broader borrowing strategy outlined in its indicative issuance calendar for FY2025-26. The calendar projects total borrowings of ₹8 lakh crore during the first half of the fiscal year and includes diverse maturities ranging from three to fifty years. Such structured planning not only aids institutional and retail investors in strategizing their investments but also ensures stability in India’s G-Sec market.
The re-issuance of these securities is expected to attract significant interest from institutional investors such as banks and insurance companies due to their statutory investment requirements and long-term yield expectations. Simultaneously, primary dealers may leverage short-term yield movements to optimize their bids for later resale in secondary markets. This dual participation dynamic enhances market efficiency while catering to diverse investor profiles.
As India continues to strengthen its financial infrastructure through initiatives like these auctions, it reinforces its commitment to fostering transparency, inclusivity, and strategic economic growth.
