GoI to Conduct Rs. 15,000 Crore G-Sec Switch Auction on December 15, 2025

Press Release: 2025-2026/1676, Dated 10.12.2025

1. Overview of the Announcement

The Government of India has announced that it will conduct a conversion/switch auction of its outstanding securities for an aggregate amount of ₹15,000 crore.

A security switch allows the Government to replace existing securities (“source securities”) with new ones (“destination securities”), supporting debt consolidation, maturity management, and liquidity enhancement in government bond markets.

2. Auction Mechanism

2.1 Platform for Bidding

Market participants must submit bids through the Reserve Bank of India’s e-Kuber system, specifying:

• The amount of source securities offered for conversion
• The price/yield of both the source and destination securities

This ensures transparent, system-driven participation by banks, primary dealers, and other eligible entities.

2.2 Auction Format

• The auction will follow a multiple-price (discriminatory price) format
• Successful bidders may be allotted securities at different accepted prices

This format reflects prevailing secondary-market conditions and allows for market-determined pricing.

3. Auction Schedule

• Bidding Date – December 15, 2025
• Bidding Time – 10:30 AM to 11:30 AM
• Result Announcement – Same day (December 15, 2025)
• Settlement Date – December 16, 2025

This tight operational timeline aligns with standard government securities auction procedures overseen by RBI.

4. Implications for Market Participants

4.1 For Banks and Primary Dealers

• Opportunity to manage duration, liquidity, and balance sheet profiles
• Enhanced flexibility to exchange illiquid or nearing-maturity securities
• Potential to improve SLR portfolios through participation in the switch

4.2 For Secondary Market Liquidity

• Boosts liquidity in destination securities
• Helps consolidate outstanding issuances into larger, more tradeable benchmarks

4.3 For Government Borrowing Programme

• Supports smoother debt rollover,
• Helps rationalise the maturity profile of public debt
• Strengthens overall public debt management strategy

5. Operational Considerations

Participants must ensure:

• Adequate funding and settlement readiness for December 16
• Timely submission on e-Kuber within the one-hour window
• Internal alignment of treasury, risk, and settlement teams

Non-compliance with deadlines or system requirements could lead to bidding rejection or settlement failures.

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