Mumbai (Maharashtra) [India], July 24 : The Reserve Bank of India (RBI) on Friday announced the results of the underwriting auction conducted for Rs 28,000 crore worth of government securities. The auction was fully subscribed, and there was no devolvement to primary dealers.
According to the central bank, the auction was held on July 24, 2026, for additional competitive underwriting (ACU) of the New GS 2041 and the 7.43 per cent Government Security (GS) 2076. The ACU process allows primary dealers to competitively bid for the right to underwrite additional portions of the notified amount of government bonds, over and above their minimum underwriting commitments.
For the New GS 2041, the notified amount was Rs 17,000 crore. The minimum underwriting commitment (MUC) stood at Rs 8,505 crore, with the remaining Rs 8,495 crore accepted under ACU. The total amount underwritten was thus Rs 17,000 crore. The cut-off commission rate for the ACU portion was set at 0.74 paise per Rs 100.
In the case of the 7.43 per cent GS 2076, the notified amount was Rs 11,000 crore. The MUC was Rs 5,502 crore, while the ACU amount accepted was Rs 5,498 crore, taking the total amount underwritten to Rs 11,000 crore. The ACU commission cut-off rate here was 0.98 paise per Rs 100.
Underwriting of government securities is a critical function performed by primary dealers to ensure smooth borrowing operations by the government. In this system, primary dealers commit to subscribing to unsold portions of government bond issuances, thereby assuring full subscription.
The ACU mechanism allows the government to allocate additional underwriting amounts through a competitive bidding process, where the commission rate is determined based on market demand.
The RBI's announcement comes as part of its routine government securities issuance calendar, which is a key instrument for managing the fiscal requirements of the government and influencing liquidity in the financial system.
Primary dealers, a select set of financial institutions authorised by the RBI, play an essential role in underwriting and distributing these securities in the secondary market.