Summary of this article
Government schedules Rs 34,000 crore bond auction for November 13.
The 6.94 per cent government security matures on May 11, 2036.
Retail investors can participate with a minimum investment of Rs 10,000.
Investors looking to add government securities to their portfolios will be able to bid for a fresh tranche of an existing government bond this week. The Centre has fixed November 13, 2026, for the auction of Rs 34,000 crore worth of its 6.94 per cent Government Security 2036.
The government can also accept additional subscriptions of up to Rs 2,000 crore, taking the total amount on offer to Rs 36,000 crore if it exercises this option. The bond will mature on May 11, 2036.
Key Details Of The Government Bond Auction
The security on offer is the 6.94 per cent Government Security (GS) 2036, which carries an annual coupon rate of 6.94 per cent and will mature on May 11, 2036.
The auction is a re-issue of an existing government security. The auction will be conducted on a price basis, as the security is being re-issued. The RBI will use the multiple price method. Under this system, successful bidders will receive the security at the price they quoted in their respective bids.
Retail Investor Participation Through RBI Retail Direct
Individual investors can participate through the non-competitive bidding facility. Under this arrangement, investors do not need to quote a price or yield. Their allotment takes place at the weighted average price of the successful competitive bids.
Up to 5 per cent of the notified auction amount has been set aside for eligible individuals and institutions under this facility. For the Rs 34,000 crore auction, this works out to Rs 1,700 crore.
Retail investors can place their bids through the RBI Retail Direct portal. They can also participate through banks and primary dealers. The minimum investment amount is capped at Rs 10,000, with additional investments permitted in multiples of Rs 10,000.
Auction Schedule And Bidding Timings
Both competitive and non-competitive bids will have to be submitted digitally on RBI's e-Kuber platform.
The bidding window for non-competitive investors will stay open from 10:30 am to 11 am on November 13. Competitive bids can be submitted between 10:30 am and 11:30 am on the same day. Primary dealers can place bids for the Additional Competitive Underwriting between 9 am and 9:30 am.
The auction results will be announced on November 13. Successful bidders must make their payments on November 16, the settlement date.
Interest Payments And Trading Eligibility
The bond will generally pay interest twice a year. Its coupon rate is 6.94 per cent, calculated on the face value of the investment. For example, an investor holding bonds worth Rs 10,000 will receive Rs 694 in annual interest, usually in two instalments of Rs 347 each.
The security will also be eligible for repo transactions, subject to RBI rules. It will be available for when-issued trading between November 11 and November 13, allowing eligible market participants to trade the security before its issuance.
