India announces auction of government securities worth Rs 32,000 cr

The Indian government will auction securities totaling Rs 32,000 crore on April 24, 2026. The RBI will manage the sale, which involves four types of securities, including issuance and reissuance, with specific underwriting commitments for dealers.

The Government of India announced the sale of Government Securities totaling Rs 32,000 crore through an auction scheduled for April 24, 2026. This involves both the issuance and reissuance of four distinct categories of securities, according to the Reserve Bank of India (RBI).

Auction Details and Underwriting Commitments

The RBI stated that, "As per the extant scheme of underwriting commitment notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) auction, applicable to each Primary Dealer (PD), are as under."

The 6.03 per cent GS 2029 and the 6.68 per cent GS 2033 securities each carry a notified amount of Rs 11,000 crore. Additionally, the government intends to raise Rs 5,000 crore through the 7.24 per cent GS 2055 bonds and another Rs 5,000 crore via the New GOI SGrB 2056.

For the securities maturing in 2029 and 2033, the Minimum Underwriting Commitment per Primary Dealer is fixed at Rs 262 crore. The same amount applies as the minimum bidding commitment under the Additional Competitive Underwriting auction for these specific papers. Meanwhile, for the longer-dated 2055 and 2056 securities, the MUC and minimum bidding commitment are set at Rs 120 crore per Primary Dealer.

Auction Procedure and Timeline

"The underwriting auction will be conducted through multiple price-based method on April 24, 2026 (Friday)," the RBI noted regarding the procedural aspects of the sale.

Primary Dealers must submit their bids for the ACU auction through the Reserve Bank of India Core Banking Solution, also known as the e-Kuber system. The operational window for these electronic submissions is strictly scheduled between 09:00 A.M. and 09:30 A.M. on the day of the auction.

"The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of securities," the central bank said, clarifying the settlement process for the participating entities.

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