Document Title: Underwriting Auction for sale of Government Securities for ₹36,000 crore on October 09 2026
Issuing Authority: Reserve Bank of India (on behalf of Government of India)
Reference: Press Release 2026-2027/1279
Date: Not specified
Capital Markets and Flows
The Government of India has announced the re‑issue of a total of ₹36,000 crore of Government Securities through an underwriting auction scheduled for 9 October 2026 (Friday). Two tranches are being offered: a 7.06% Government Security maturing in 2041 with a notified amount of ₹23,000 crore, and a 7.43% Government Security maturing in 2076 with a notified amount of ₹13,000 crore. The auction will be conducted using a multiple price‑based method. Primary Dealers (PDs) are required to submit bids for the Additional Competitive Underwriting (ACU) auction electronically via the RBI’s Core Banking Solution (e‑Kuber) between 09:00 A.M. and 09:30 A.M. on the auction day. The underwriting commission earned by each PD will be credited to its current account with the RBI on the day the securities are issued.
Regulatory and Policy Measures
The underwriting framework follows the scheme of underwriting commitment notified on 14 November 2007. Under this scheme, each PD must meet a Minimum Underwriting Commitment (MUC) and a minimum bidding commitment under the ACU auction. For the 7.06% GS 2041 issue, the MUC and ACU minimum bidding commitment are set at ₹548 crore per PD. For the 7.43% GS 2076 issue, both the MUC and ACU minimum bidding commitment are set at ₹310 crore per PD. These commitments ensure adequate underwriting coverage and market participation.
The release underscores the procedural aspects of the auction, including the electronic bidding window, the crediting of underwriting commissions, and the adherence to the longstanding underwriting commitment scheme.
Overall, the document details the scale of the securities re‑issue, the specific terms for primary dealers, and the operational mechanisms employed by the RBI to facilitate the auction.