Non-Competitive Bidding in Government Securities

Non-Competitive Bidding in Government Securities

Government Securities (G-Sec) are issued in the primary market through auctions conducted by Reserve Bank of India (RBI). An investor, depending upon eligibility, may bid in an auction under Competitive Bidding or Non-Competitive Bidding.

 

Institutional investors such as banks, financial institutions, primary dealers, mutual funds, and insurance companies are generally eligible to make competitive bids.

 

To encourage retail investors in Government Securities (G-Secs), the facility of non-competitive bidding (NCB) has been introduced. Under the scheme, eligible retail investors apply for a certain amount of securities in an auction without mentioning price/yield. Such bidders are allotted securities at the weighted average price/yield of the auction.

 

RBI conducts auction usually every week to issue Treasury Bills (T-Bills) and GoI dated securities. The details of upcoming auction are made available by NSE.

 

Scheme for Non-Competitive Bidding

 

Upcoming and Past Auctions

 

Investing in Government Securities  

Eligible retail investors necessarily have to participate in non-competitive bidding (NCB) at RBI through an aggregator or facilitator. NSE acts as facilitator in NCB to aggregate the bids received from the retail investors and submits a single bid at RBI.

 

Retail investors have multiple channels through which they can place their bids. Retail investors can place their bids through trading members of NSE or using the NSE goBID mobile app/web platform.

 

Click Here to visit NSE goBID platform or download goBID app on your mobile (Available on App Store and Google Play)

How to invest in government securities?

About Government Securities

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