The Indian government has announced the re-issue of the “6.48 per cent Government Security 2035” for a total amount of Rs 32,000 crore through a price-based auction using the multiple price method. The Reserve Bank of India’s Mumbai Office will conduct the auction on January 2.
The Finance Ministry stated that the Government can opt to retain additional subscriptions up to Rs 2,000 crore against the security. Eligible individuals and institutions will receive up to 5% of the notified amount of the security sale as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Both competitive and non-competitive bids for the auction must be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber system) on January 2, 2026. Non-competitive bids are to be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.
The auction results will be declared on January 2, with successful bidders making payments on January 5. The Security will be eligible for “When Issued” trading as per the guidelines on ‘When Issued transactions in Central government Securities’ issued by the Reserve Bank of India.
Governments issue bonds to raise funds from investors, enabling them to finance public spending, infrastructure projects, social programs, and manage budget deficits. Bonds are a secure investment backed by the government, offering low-risk returns through regular interest and principal repayments, aiding in national financing without an immediate tax increase.
