The Reserve Bank of India conducted a government securities underwriting auction on October 1, 2026. The RBI underwriting auction set cut-off commission rates for Primary Dealers across four securities. Additionally, the auction covered a total notified amount of ₹33,000 crore.
Key Details of the RBI Underwriting Auction
The auction involved Additional Competitive Underwriting (ACU) for four government securities. Each security was fully underwritten, meeting its total notified amount. For example, the 6.20% GS 2029 bond had a notified amount of ₹9,000 crore, with an ACU cut-off rate of 1.97 paise per ₹100 — the highest among all securities.
The 6.57% GS 2033 bond carried the largest notified amount at ₹12,000 crore. Its ACU commission cut-off rate stood at 0.85 paise per ₹100. Meanwhile, the 7.63% GS 2056 bond covered ₹9,000 crore at a cut-off rate of 0.64 paise per ₹100 — the lowest of the four.
The 7.50% GOI Sovereign Green Bond (SGrB) 2056 had a notified amount of ₹3,000 crore. Its ACU cut-off commission rate came in at 0.87 paise per ₹100. Therefore, Primary Dealers received commissions reflecting their competitive bids for each security.
What This Means for Bond Markets and Primary Dealers
Primary Dealers play a central role in India’s government securities market. They underwrite auctions and ensure the RBI can raise funds smoothly. As a result, the cut-off rates set in this auction directly affect their earnings and bidding strategies going forward.
The Minimum Underwriting Commitment (MUC) covered roughly half of each bond’s notified amount. Additionally, the ACU portion filled the remaining half in each case. This structure ensures full subscription while rewarding competitive underwriting bids.
The actual sale auction for these securities also took place on October 1, 2026. However, the underwriting results confirm strong Primary Dealer participation across all four securities. This signals continued confidence in India’s government bond market.
Source: RBI Press Releases
