Government to Auction ₹34,000 Crore of New 2036 Dated Securities on May 8
The Reserve Bank of India has scheduled a ₹34,000 crore auction for a new government security maturing in 2036. Conducted via the e-Kuber system on May 8, 2026, the sale includes a ₹2,000 crore greenshoe option and follows the multiple price-based auction method. Auction of Government of India Dated Security Government of India (GoI) has announced the sale (issue) of one dated security for a notified amount of ₹34,000 crore as per the following details:.
Key Facts
- Notified Amount: ₹34,000 Crore
- Security: New GS 2036 (Maturity May 11, 2036)
- Greenshoe Option: Up to ₹2,000 Crore additional retention
- Auction Method: Multiple price-based
- Non-Competitive Quota: 5% of notified amount
- Settlement Date: May 11, 2026
The Government of India is launching a new dated security, 'New GS 2036,' aiming to raise ₹34,000 crore. The auction, managed by the Reserve Bank of India (RBI) through its Mumbai office, allows for an additional ₹2,000 crore subscription under a greenshoe provision. This issuance is set for May 8, 2026, with settlement following on May 11.
The RBI will use the multiple price-based auction method, where successful bidders pay the specific yield or price they quoted. This differs from uniform price auctions where all successful bidders pay a single cut-off rate. New securities follow yield-based bidding, while re-issuances are price-based. Non-competitive bidding is available for up to 5% of the notified amount, facilitating participation from smaller investors through the Retail Direct portal.
- Trading Window: 'When Issued' trading is permitted from May 5 to May 8, 2026.
- Bidding Timing: Non-competitive bids close at 11:00 AM, while competitive bids extend to 11:30 AM on the auction day.
- Primary Dealers: PDs have a specific window (09:00 AM to 09:30 AM) to submit underwriting bids for the Additional Competitive Underwriting (ACU) portion.
Glossary
Multiple Price Auction: A format where each successful bidder pays the price or yield they specifically bid, rather than a single market-clearing price.
When Issued (WI) Trading: A market for a security that has been authorized but not yet issued, allowing price discovery before the actual auction.
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