Mumbai (Maharashtra) [India], August 14 : The Reserve Bank of India (RBI) on Thursday announced the results of the underwriting auction conducted for Additional Competitive Underwriting (ACU) of two Government of India securities, setting cut-off commission rates for primary dealers.
According to the central bank, the auction was held on August 14, 2025, for the 6.01 per cent Government Security (GS) 2030 and a new Government Security maturing in 2055. The ACU process allows primary dealers to competitively bid for the right to underwrite additional portions of the notified amount of government bonds, over and above their minimum underwriting commitments.
For the 6.01 per cent GS 2030, the notified amount was Rs 15,000 crore. The minimum underwriting commitment (MUC) stood at Rs 7,518 crore, with the remaining Rs 7,482 crore accepted under ACU. The total amount underwritten was thus Rs 15,000 crore. The cut-off commission rate for the ACU portion was set at 0.40 paise per Rs 100.
In the case of the new GS 2055, the notified amount was Rs 13,000 crore. The MUC was Rs 6,510 crore, while the ACU amount accepted was Rs 6,490 crore, taking the total amount underwritten to Rs 13,000 crore. The ACU commission cut-off rate here was higher, at 0.78 paise per Rs 100.
The RBI said that the actual auction for the sale of these securities would also be held on August 14, 2025, subsequent to the completion of the underwriting process.
Underwriting of government securities is a critical function performed by primary dealers to ensure smooth borrowing operations by the government. In this system, primary dealers commit to subscribing to unsold portions of government bond issuances, thereby providing an assurance of full subscription.
The ACU mechanism allows the government to allocate additional underwriting amounts through a competitive bidding process, where the commission rate is determined based on market demand.
The RBI's announcement comes as part of its routine government securities issuance calendar, which is a key instrument for managing the fiscal requirements of the government and influencing liquidity in the financial system.
Primary dealers, a select set of financial institutions authorised by the RBI, play an essential role in underwriting and distributing these securities in the secondary market.
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