What changed
RBI conducted an Additional Competitive Underwriting (ACU) auction for four government securities on June 19, 2026. The cut-off commission rates were set at 0.50 paise for 6.03% GS 2029, 0.38 paise for 6.68% GS 2033, 0.59 paise for 7.24% GS 2055, and 0.99 paise for 7.50% GOI SGrB 2056. Total notified amount of ₹32,000 crore was fully underwritten by Primary Dealers.
What it means for you
For banks and Primary Dealers, these commission rates indicate the cost of underwriting these securities. Lower rates on shorter-tenor papers (2029, 2033) suggest lower risk perception, while higher rates on longer-tenor papers (2055, 2056) reflect higher duration risk. Banks participating in auctions can use these rates as benchmarks for their own underwriting strategies.
What you must do
- Review the cut-off commission rates for each security to assess underwriting profitability.
- Align your underwriting bids with the observed rates for similar tenor securities in future auctions.
- Monitor the auction results for the sale of these securities on June 19, 2026, to gauge market demand.
- Update your risk models for government securities underwriting using these commission benchmarks.
Who it affects
Primary Dealers, Banks participating in government securities auctions, Treasury departments of financial institutions
What is the total notified amount in this underwriting auction?
The total notified amount across all four securities is ₹32,000 crore, fully underwritten by Primary Dealers.
Why is the commission rate higher for the 7.50% GOI SGrB 2056?
The higher commission rate of 0.99 paise per ₹100 reflects the longer tenor (2056) and associated duration risk, requiring higher compensation for underwriters.
When will the actual sale of these securities take place?
The auction for the sale of these securities is scheduled on June 19, 2026, the same day as the underwriting auction.