Mumbai: The Reserve Bank of India (RBI) on Thursday released the results of the underwriting auction for Additional Competitive Underwriting (ACU) of two Government of India securities, announcing the cut-off commission rates for primary dealers.
The auction, held on August 14, 2025, covered the 6.01% Government Security (GS) 2030 and a new GS maturing in 2055. Under ACU, primary dealers competitively bid to underwrite additional portions of government bonds beyond their minimum commitments.
For the 6.01% GS 2030, the notified amount was ₹15,000 crore, with a Minimum Underwriting Commitment (MUC) of ₹7,518 crore. The remaining ₹7,482 crore was taken up under ACU, bringing the total underwritten to ₹15,000 crore. The ACU cut-off commission rate was set at 0.40 paise per ₹100.
For the new GS 2055, the notified amount was ₹13,000 crore, with ₹6,510 crore under MUC and ₹6,490 crore under ACU. The ACU cut-off commission rate here was higher at 0.78 paise per ₹100.
The RBI noted that the actual auction for selling these securities would also be held on August 14, after the underwriting process.
Underwriting by primary dealers ensures smooth government borrowing, as they commit to buying any unsold portions of bond issues. The ACU process allocates extra underwriting amounts through competitive bidding, with rates set by market demand.
These auctions are part of the RBI’s regular government securities issuance calendar, a key tool for meeting fiscal needs and managing financial system liquidity. Primary dealers—RBI-authorised financial institutions—also distribute these securities in the secondary market.
