The Reserve Bank of India will conduct a government securities auction worth ₹33,000 crore on October 1, 2026. This G-Sec auction covers four securities and involves Primary Dealers through an underwriting commitment process. Therefore, understanding the structure helps investors and market participants prepare accordingly.
Key Details of the G-Sec Auction
The Government of India has announced the re-issue of four government securities. These include the 6.20% GS 2029, the 6.57% GS 2033, the 7.63% GS 2056, and the 7.50% GOI Sovereign Green Bond (SGrB) 2056. Additionally, the total notified amounts for each security are ₹9,000 crore, ₹12,000 crore, ₹9,000 crore, and ₹3,000 crore respectively.
Each Primary Dealer (PD) must meet a Minimum Underwriting Commitment (MUC). For example, PDs must commit ₹215 crore for both the GS 2029 and GS 2056 securities. Meanwhile, the commitment for GS 2033 stands at ₹286 crore, and the Green Bond requires ₹72 crore per PD. The minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction mirrors these MUC amounts exactly.
How the G-Sec Auction Process Works
RBI will conduct the underwriting auction using a multiple price-based method. As a result, each Primary Dealer may bid at a different price, and the market determines the final underwriting commission rates. PDs must submit their ACU bids electronically via RBI’s e-Kuber system between 9:00 AM and 9:30 AM on October 1, 2026.
The e-Kuber platform is RBI’s Core Banking Solution for such market operations. However, PDs must act within the tight 30-minute window to ensure their bids are accepted. After the auction concludes, RBI will credit the underwriting commission directly to each PD’s current account on the day the securities are issued. This ensures a smooth and timely settlement for all participants.
What This Means for the Bond Market
This government securities auction reflects the Centre’s ongoing borrowing program for FY 2026-27. Additionally, the inclusion of a Sovereign Green Bond signals continued government focus on sustainable finance. Investors should monitor the auction results closely, as yields on these securities often influence broader fixed-income market trends in India.
Source: RBI Press Releases
