Centre To Auction Rs 28,000 Crore Of Reissued G-Secs On Dec 12

The Centre will auction two reissued government securities for a total notified amount of Rs 28,000 crore on December 12, 2025. The auction will include the 6.68 per cent GS 2040 and the 6.90 per cent GS 2065. These bonds mature in 2040 and 2065, respectively, and are part of the government’s regular borrowing program. The Reserve Bank of India (RBI) will conduct the auction on its eKuber platform, which is the central system used for submitting bids in government securities (G-sec) auctions.

The 6.68 per cent GS 2040 is being reissued for Rs 16,000 crore, while the 6.90 per cent GS 2065 will be reissued for Rs 12,000 crore. Both are long-term bonds and their sale will help the government manage borrowings for longer horizons. There is also an option to accept an additional Rs 2,000 crore for each security if needed by the government.

The Bidding Process

The auction will be conducted using the Multiple Price method. This means that each successful bidder will pay the price quoted, instead of all bidders getting a single uniform price. Competitive and non-competitive bids will be accepted electronically on the eKuber platform during fixed time windows on the day of the auction.

Non-competitive bids can be submitted from 10:30 a.m. to 11:00 a.m. This segment is meant for individuals and some specified institutions who wish to participate without actively quoting prices. Up to 5 per cent of the notified amount for each bond is reserved for this category. Individual investors are allowed to participate directly through the Retail Direct portal.

Competitive bids quoting specific yields or prices will be accepted between 10:30 am and 11:30 am Investors can place more than one competitive bid, but not over the notified amount, in total. The results will be announced on the same day. Successful bidders must settle on December 15, the settlement date for the auction.

Underwriting And When Issued Trading

The primary dealers will submit bids for underwriting the Additional Competitive Underwriting portion between 9:00 am and 9:30 am on the auction day. Underwriting ensures that the bonds are fully subscribed even when investor demand falls short. The underwriting arrangement would be in conformity with the existing guidelines issued by the Reserve Bank of India (RBI).

Both securities will also be eligible for issued trading from December 9-12, 2025. Issued trading allows market participants to buy and sell the securities before the auction is completed. This helps them discover market prices in advance and improves liquidity.

Operational Rules And Investor Guidelines 

The bonds will be issued in a minimum lot of Rs 10,000 and in multiples thereafter. Interest on G-secs is normally paid half-yearly, and the specific coupon particulars are notified in the related notification. The bonds will be eligible for repo transactions and can be held in Subsidiary General Ledger or Constituents’ Subsidiary General Ledger accounts. 

In the case of any system-related problem influencing the e-submission process, RBI has a Business Continuity Plan that permits physical bids under exceptional circumstances.