Government of India: Rs 36,000 crore bond auction, 6 November

The Government of India has announced a Rs 36,000 crore auction of two government securities for 6 November 2026, according to the Ministry of Finance’s notification dated 2 November 2026. The Reserve Bank of India (RBI) will conduct the sale through its Mumbai office, with payment by successful bidders due on 9 November 2026.

The notification provides for the reissue of Rs 23,000 crore of the 7.06 per cent Government Security 2041 and Rs 13,000 crore of the 7.43 per cent Government Security 2076. A reissue offers additional amounts of an existing security rather than creating a bond with a new maturity date.

The government also has the option to retain additional subscriptions of up to Rs 2,000 crore in each security, the ministry said. If exercised fully for both securities, that would take the total to Rs 40,000 crore, calculated by adding the two optional amounts to the notified sale. The additional borrowing is an option, not an announced allotment.

Two securities with different repayment dates

The ministry’s notification identifies the 2041 security as having been originally issued on 27 July 2026 for a 15-year tenure. It matures on 27 July 2041 and carries a coupon, or stated annual interest rate on its face value, of 7.06 per cent.

The 2076 security was originally issued on 19 January 2026 for a 50-year tenure, according to the notification. It matures on 19 January 2076 and carries a coupon of 7.43 per cent. These tenures run from the original issue dates, not from the forthcoming reissue.

The ministry specifies half-yearly interest payments for both securities. The 2041 bond pays interest on 27 January and 27 July, while the 2076 bond pays on 19 January and 19 July. Both are repayable at par on maturity, meaning repayment at their face value.

The notification also requires buyers to pay accrued interest alongside the auction payment. This is interest accumulated since the original issue or previous coupon payment. For this sale, the ministry specifies accrual through 8 November 2026; it lists 19 July 2026 as the previous coupon payment date for the 2076 security.

Separate bidding windows on auction day

According to the ministry, bids must be submitted electronically through the RBI’s e-Kuber core banking system. Non-competitive bids will be accepted between 10:30 am and 11:00 am on auction day, while competitive bids will be accepted between 10:30 am and 11:30 am.

The notification designates both sales as price-based, multiple-price auctions. The securities’ coupon rates are already specified; the sale process determines their auction prices.

For eligible retail participants, non-competitive bidding removes the need to quote a price or yield. The National Stock Exchange of India’s explanation of the mechanism says these investors apply for an amount of securities and receive allotments at the auction’s weighted average price or yield. The scheme attached to the ministry’s notification likewise provides for allotment based on the weighted average emerging from competitive bids.

The ministry reserves up to 5 per cent of the notified sale amount for eligible individuals and institutions under this facility. This allocation sits within the announced borrowing amount rather than being an additional sale.

Retail participation and intermediary responsibilities

The scheme annexed to the notification permits eligible retail investors to participate through an approved aggregator or facilitator, or through an RBI Retail Direct Gilt account. Approved intermediaries include scheduled banks, primary dealers, specified stock exchanges and other entities authorised by the RBI.

Under the ministry’s scheme, the minimum bid is Rs 10,000 in face value, with further bids in multiples of Rs 10,000. A retail investor may submit a single bid of up to Rs 2 crore in face value per security per auction.

If non-competitive demand exceeds the reserved amount, allotment will be proportionate, the scheme states. Where an intermediary receives only a partial allotment, it must distribute securities fairly and transparently among its customers. Any unfilled portion of the non-competitive allocation moves to the competitive segment.

The annexure also sets out the intermediary’s payment and delivery obligations. An aggregator must pay for its allocation on the issue date regardless of whether it has collected payment from customers. Except in extraordinary circumstances, securities must be transferred to customers within five working days of issue.

For this service, the ministry’s scheme permits brokerage, commission or service charges of up to six paise per Rs 100. These charges may be included in the sale price or collected separately, but other costs, such as funding costs, must not be built into the price or charged to the customer.

Sale follows the second-half borrowing calendar

The auction’s size and maturity split match the Department of Economic Affairs’ issuance calendar dated 25 September 2026. That calendar earmarked the same amounts for 15-year and 50-year securities during the auction week of 2-6 November 2026.

The department’s calendar provides for Rs 7,86,000 crore of dated-security issuance during October 2026-March 2027, including Sovereign Green Bonds. The government said the schedule was intended to help institutional and retail investors plan their investments and provide transparency and stability to the government securities market.

The calendar is indicative rather than fixed. The department said the government, in consultation with the RBI, could change amounts, issuance periods and maturities in response to funding requirements, market conditions or other relevant factors, with changes communicated through press releases.

For the forthcoming sale, the auction outcome remains pending. The ministry’s notification schedules publication of the results by the RBI on 6 November 2026, ahead of payment and reissue on 9 November 2026.