What changed
Government of India announced a re-issue of the 6.94% GS 2036 security for ₹34,000 crore via auction on July 3, 2026. RBI specified the underwriting auction details, including MUC and ACU bidding amounts per PD, and the multiple price-based method for the underwriting auction.
What it means for you
Primary Dealers must commit to underwrite at least ₹810 crore each for this security, ensuring market absorption. The multiple price method means PDs pay their bid price, affecting their cost of underwriting. Commission will be credited on the issue day, impacting PDs' cash flow.
What you must do
- Ensure your PD is registered for the e-Kuber system to submit ACU bids between 9:00 AM and 9:30 AM on July 3, 2026.
- Prepare to bid at least ₹810 crore in the ACU auction to meet minimum bidding commitment.
- Review your underwriting capacity and liquidity to cover the MUC of ₹810 crore.
- Monitor the auction results for commission credit to your current account with RBI.
Who it affects
Primary Dealers, Government of India's borrowing program
What is the underwriting auction method used?
The underwriting auction will be conducted using a multiple price-based method, meaning each successful bidder pays the price they bid.
When will the underwriting commission be paid?
The underwriting commission will be credited to the PD's current account with RBI on the same day the security is issued.
What is the minimum bidding commitment per PD under ACU?
Each Primary Dealer must bid at least ₹810 crore in the Additional Competitive Underwriting auction.