Market Borrowing Programme of State Government by Auction (2026)
The Government of Tamil Nadu Finance Department issued Gazette notifications No. II(1)/FIN/7(s-1)/2026, No. II(1)/FIN/7(s-2)/2026 and No. II(1)/FIN/7(s-3)/2026 on June 4, 2026, announcing the reissue of three Tamil Nadu State Government Securities through auction. The securities have a combined nominal amount of Rs.2,500 crore and do not change land ownership, planning or property rules.
What the notifications do
The Government of Tamil Nadu Finance Department notifications arrange the reissue of three State Government Securities. The borrowing will finance part of the capital expenditure of Plan Schemes and other Development Schemes under execution. Central Government consent has been obtained for the loans under Article 293(3) of the Constitution of India.
The sales are also governed by General Notification No. 860(L)/W&M-II/2025 dated November 17, 2025.
Securities being reissued
The Finance Department notifications cover:
- 7.69% Tamil Nadu SGS 2033, for a nominal amount of Rs.1,000 crore. It has a seven-year tenure from June 3, 2026, and is repayable at par on June 3, 2033.
- 7.74% Tamil Nadu SGS 2036, for a nominal amount of Rs.1,000 crore. It has a ten-year tenure from June 3, 2026, and is repayable at par on June 3, 2036.
- 7.80% Tamil Nadu SGS 2041, for a nominal amount of Rs.500 crore. It has a fifteen-year tenure from June 3, 2026, and is repayable at par on June 3, 2041.
Interest accrues on the nominal value from the original issue date and is payable half yearly on December 3 and June 3.
Auction and payment
The Reserve Bank of India will conduct the auction at its Mumbai Office on June 9, 2026, using its Core Banking Solution, E-Kuber.
- Competitive bids may be submitted from 10:30 a.m. to 11:30 a.m.
- Non-competitive bids may be submitted from 10:30 a.m. to 11:00 a.m.
- Up to 10% of the notified sale amount may be allotted to eligible non-competitive bidders, with a maximum of 1% for a single bid.
- The Reserve Bank of India will publish the result on its website on the same day.
- Successful bidders must pay on June 10, 2026, before the close of banking hours, using one of the payment methods listed in the notifications.
Who is affected
The Finance Department notifications principally affect investors, eligible institutions, banks and auction participants. Banks may treat the stock as an eligible Government Securities investment for Statutory Liquidity Ratio purposes, and the stock qualifies for the ready forward facility. The notifications contain no provision changing land title, registration, land use, planning permission or property transactions.
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Common questions
Does this Gazette notification affect my land or property purchase?
No land or property rule is included. The notifications concern the auction and reissue of Tamil Nadu State Government Securities.
Can individuals participate in the auction?
Eligible individuals may participate through the non-competitive bidding facility. Up to 10% of the notified sale amount is available for eligible individuals and institutions, subject to a maximum of 1% for a single bid.
When will interest on these securities be paid?
Interest is payable half yearly on December 3 and June 3. The applicable annual rates are 7.69%, 7.74% and 7.80% for the respective securities.
When must successful bidders make payment?
Successful bidders must make payment on June 10, 2026, before the close of banking hours, using a payment method permitted by the notifications.
