RBI announces underwriting auction for govt securities of Rs 32,000 cr

The Indian government will conduct an underwriting auction for Rs 32,000 crore in Government Securities on May 22. The RBI has detailed the commitment rules for Primary Dealers for the 2029, 2033, and 2055 securities.

The Government of India is set to conduct an underwriting auction for the sale (re-issue) of Government Securities for Rs 32,000 crore on Friday (May 22).

According to the Reserve Bank of India (RBI), the entire notified amount for the new securities is subject to this underwriting process. 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."

Auction Details

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 10,000 crore through the 7.24 per cent GS 2055 bonds.

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 security, the MUC and minimum bidding commitment are set at Rs 239 crore per Primary Dealer.

Auction Procedure and Timeline

"The underwriting auction will be conducted through multiple price-based method on May 22, 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. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)