GovernmentBonds – RBI Sets Underwriting Commission for Three Government Securities Ahead of Auction
GovernmentBonds – The Reserve Bank of India (RBI) has announced the underwriting commission cut-off rates for three government securities with a combined notified value of Rs 32,000 crore. The announcement follows the Additional Competitive Underwriting (ACU) auction conducted on July 17, 2026, where Primary Dealers participated in underwriting the upcoming bond issuance. The central bank also confirmed that the sale of these securities will take place on July 17, 2026.
Commission Fixed for 2029 Government Security
For the 6.03 per cent Government Security maturing in 2029, carrying a notified amount of Rs 11,000 crore, the RBI has fixed the underwriting commission cut-off rate at 0.44 paise for every Rs 100. The security attracted a Minimum Underwriting Commitment (MUC) of Rs 5,502 crore. In addition, bids worth Rs 5,498 crore were accepted through the Additional Competitive Underwriting process, completing the notified amount for this issue.
Underwriting Details for 2033 Security
The central bank also released the underwriting commission for the 6.68 per cent Government Security due in 2033. This bond issue has the same notified amount of Rs 11,000 crore. The underwriting commission cut-off rate has been set at 0.34 paise per Rs 100, making it lower than that of the 2029 security. As with the earlier issue, the Minimum Underwriting Commitment stood at Rs 5,502 crore, while the remaining Rs 5,498 crore was accepted through competitive underwriting bids.
Highest Commission Assigned to 2055 Bond
Among the three securities, the 7.24 per cent Government Security maturing in 2055 received the highest underwriting commission cut-off rate. The RBI fixed the rate at 0.62 paise per Rs 100 for this long-term bond. The notified amount for the issue is Rs 10,000 crore. Out of this, the Minimum Underwriting Commitment was Rs 5,019 crore, while bids amounting to Rs 4,981 crore were accepted under the Additional Competitive Underwriting mechanism.
Combined Underwriting Figures
Across all three government securities, the total Minimum Underwriting Commitment reached Rs 16,023 crore. The RBI accepted an additional Rs 15,977 crore through the competitive underwriting process, bringing the total accepted amount in line with the combined notified value of Rs 32,000 crore. These figures reflect the participation of Primary Dealers in supporting the government’s borrowing programme through the underwriting framework.
RBI Confirms Auction Schedule
In its official statement, the Reserve Bank of India said that the underwriting commission rates were determined following the Additional Competitive Underwriting auction conducted on July 17, 2026. The central bank also confirmed that the auction for the sale of these government securities is scheduled to be held on the same day. The announcement provides market participants with the final underwriting terms before the securities are offered to investors.