Here’s how you can benefit from the upcoming RBI auction of Government Securities
If you’re looking for a safe and stable investment option backed by the Government of India, mark your calendar: July 18, 2025. That’s when the RBI will auction two high-value Government Securities (G-Secs) worth a combined ₹27,000 crore.
This is a great opportunity for both retail and institutional investors to lock into long-term government bonds with assured returns.
💡 What Are G-Secs and Why Should You Care?
Government Securities (G-Secs) are debt instruments issued by the Government of India to borrow money. In return, investors get:
Guaranteed interest (usually paid semi-annually)
Full principal back on maturity
Zero credit risk – it’s government-backed!
Whether you’re a conservative investor, HNI, or building a long-term income portfolio, G-Secs offer security, stability, and predictable returns.
📢 Auction Details You Should Know:
The Reserve Bank of India (RBI) will conduct the auction through its E-Kuber platform. Here’s what’s on offer:
1️⃣ New Government Security 2030
Notified Amount: ₹15,000 crore
Auction Type: Yield-based
Method: Multiple price method
Maturity: 2030 – ideal for medium-term investors
2️⃣ 7.09% Government Security 2054 (Re-Issue)
Notified Amount: ₹12,000 crore
Auction Type: Price-based
Coupon: 7.09%
Method: Multiple price method
Maturity: 2054 – for long-term, retirement-focused portfolios
👉 Bonus: The government may retain up to ₹2,000 crore extra in each bond if demand is strong.
🙋 Can You Participate as a Retail Investor?
Yes – and it’s easier than you think!
✅ Up to 5% of the auction amount is reserved for individuals and eligible institutions through the Non-Competitive Bidding Facility.
That means:
No need to quote a price or yield
You get allocation at the weighted average price
You can apply via the RBI Retail Direct portal or through your bank/broker (if supported)
⏰ Auction Schedule – July 18, 2025 (Friday):
Non-Competitive Bids: 10:30 AM to 11:00 AM
Competitive Bids: 10:30 AM to 11:30 AM
Result Announcement: Same day
Settlement (Payment): July 21, 2025 (Monday)
🔄 When-Issued (WI) Trading – Trade Before You Own
Both G-Secs are eligible for “When Issued” trading, allowing you to buy/sell even before official issuance. It improves price discovery and liquidity for early movers.
WI trades follow RBI Circular No. RBI/2018-19/25.
📌 Why Should Investors Care?
Safe Investment: Sovereign guarantee, no default risk
Tax Efficient: No TDS; capital gains apply only on secondary market sales
High Liquidity: Tradable in secondary markets
Great Diversifier: Ideal for balancing equity-heavy portfolios
Fixed Income: Ideal for retirees and conservative investors
