The Reserve Bank of India (RBI) on Friday announced the result of the underwriting auction conducted for the Additional Competitive Underwriting (ACU), setting the cut-off rates for underwriting commission payable to Primary Dealers.
The underwriting auction was conducted for the Government of India security with a notified amount of Rs 32,000 crore, according to the RBI release issued on Friday.
“In the underwriting auction conducted on May 15, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers,” the central bank said in its release.
The RBI said the auction pertained to the “6.36% GS 2031” and “New GS 2066” securities, under which the Minimum Underwriting Commitment (MUC) amount was fixed at Rs 10,500 crore and Rs 5,502, respectively. The Additional Competitive Underwriting amount accepted stood at Rs 10,500 crore and Rs 5,498, respectively, taking the total amount underwritten to Rs 32,000 crore.
Government securities, commonly known as G-Secs, are debt instruments issued by the Government of India to borrow money from the market. Underwriting auctions are conducted to ensure that government bond issuances receive adequate subscription support from Primary Dealers.
Primary Dealers are institutions authorised by the RBI to support the government securities market by underwriting issuances and participating in auctions. They play a key role in ensuring smooth borrowing operations for the government.
The underwriting process is carried out before the main auction of government securities. Through this mechanism, Primary Dealers commit to underwrite a specified portion of the issue in return for an underwriting commission.
The RBI regularly conducts underwriting auctions as part of the government’s market borrowing programme aimed at financing fiscal requirements through dated securities and treasury bills.
