RBI Announces Underwriting Auction Results for Government Securities

The RBI has disclosed the results of its underwriting auction, setting cut-off rates for commissions to Primary Dealers. The auction, related to the issuance of Rs 32,000 crore in government securities, helps ensure adequate subscription support and smooth government borrowing operations.

The Reserve Bank of India (RBI) announced the results of its underwriting auction for Additional Competitive Underwriting (ACU) on Friday. The auction, held on May 15, 2026, established cut-off rates for commissions payable to Primary Dealers involved in underwriting Government of India securities.

According to the RBI's release, the auction involved securities '6.36% GS 2031' and 'New GS 2066.' The set Minimum Underwriting Commitment (MUC) was Rs 10,500 crore and Rs 5,502 crore, respectively, with the accepted additional underwriting amount at Rs 10,500 crore and Rs 5,498 crore. This brought the total underwritten value to Rs 32,000 crore.

Government securities, or G-Secs, are debt instruments for market borrowing by the government. Underwriting auctions by the RBI encourage adequate subscription support from Primary Dealers. These authorized institutions ensure the smooth execution of government borrowing operations, which finance fiscal requirements through securities and treasury bills.