Document title: Conversion/Switch of Government of India Securities

Issuing authority: Reserve Bank of India (RBI)

Reference: Press Release 2026-2027/1480

Date: 11 November 2026

Capital Markets and Flows

The Government of India, through the RBI, is conducting a one‑day auction to convert or switch securities with a total face value of ₹25,000 crore. The auction will be held on 16 November 2026 (Monday) between 10:30 am and 11:30 am on the RBI’s Core Banking Solution platform, e‑Kuber. Bids must be submitted electronically within this window, and the auction result will be announced on the same day. Settlement of successful bids will occur on 17 November 2026 (Tuesday) on a T+1 basis.

The source securities and their respective face‑value amounts are as follows: 7.38 % GS 2027 (₹5,000 crore), 8.26 % GS 2027 (₹2,000 crore), 7.37 % GS 2028 (₹4,000 crore), 7.26 % GS 2029 (₹4,000 crore), 7.10 % GS 2029 (₹5,000 crore) and 7.04 % GS 2029 (₹5,000 crore). The destination securities offered in exchange are 7.18 % GS 2037, 7.40 % GS 2062, 6.83 % GS 2039, 7.73 % GS 2034, 6.64 % GS 2035 and 7.41 % GS 2036, each with specified maturity dates.

The auction follows a multiple‑price mechanism; successful bidders receive the destination security at the price they quoted. The cut‑off price is determined based on the destination security price, and bids at or above this cut‑off are accepted. In the event of multiple bids at the cut‑off price, a pro‑rata allotment will be applied. Minimum bid size is ₹10,000 and must be in multiples of ₹10,000. Participants may submit multiple bids provided the aggregate does not exceed their holdings of the source securities.

Pricing rules require the source security price quoted in a bid to equal the FBIL closing price of that security on the previous working day; any deviation leads to rejection. The destination security price may be quoted independently after accounting for the source price. The switch ratio, defined as the price of the source security divided by the price of the destination security, is rounded to eight decimal places. The face value of the destination security allotted to a successful bid is calculated by multiplying the allotted source face value by the rounded switch ratio and then rounding down to the nearest ₹10,000. Any odd amount of destination security (less than ₹10,000) is notionally allotted and bought back at the quoted destination price, with the net cash consideration equal to the clean price of those securities.

Fund settlement is largely cash‑neutral, but a net cash flow arises from the difference between accrued interest on the source and destination securities, plus any cash consideration due to rounding of the destination face value. An illustration provided shows a source face value of ₹1,000,000,000 priced at ₹97.50, a destination price of ₹99.20, yielding a switch ratio of 0.98286290, a pre‑rounding destination face value of ₹982,86,290, a rounded destination face value of ₹982,80,000, an odd amount of ₹6,290, and a cash consideration of ₹6,240 calculated at the destination price.

Regulatory and Policy Measures

The RBI outlines detailed operational guidelines for the switch transaction, including the use of the Switch Transaction module on e‑Kuber, the mandatory inclusion of source amount, source price, destination choice, and destination price in each bid, and the requirement that the aggregate bid amount for each source security not exceed the participant’s holdings. The Government of India reserves the right to accept offers for less than the notified amount, to purchase marginally higher amounts due to rounding, and to accept or reject any or all offers wholly or partially without assigning a reason. Technical assistance for the e‑Kuber platform is available via the Core Banking Operations Team (email ekuberhelpdesk@rbi.org.in, phones 022‑69870466 / 022‑69870415), while auction‑related queries can be directed to the IDMD auction team (email auctionidmd@rbi.org.in, phones 022‑22702431 / 022‑22705125).

Overall, the document provides a comprehensive framework for the conversion/switch auction, detailing the securities involved, auction mechanics, pricing and settlement procedures, and points of contact for participants.