The Government of India will offer a re-issue of government securities worth ₹32,000 crore in the auction on June 19.

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Highlights

The Government of India will reissue government securities totaling ₹32,000 crore in the auction on June 19.
A notified amount of ₹11,000 crore each has been set for 6.03% GS 2029 and 6.68% GS 2033, and ₹5,000 crore each for 7.24% GS 2055 and 7.50% GOI SGrB 2056.
A minimum underwriting commitment of ₹262 crore for the 2029 and 2033 securities and ₹120 crore for the 2055 and 2056 securities will apply to each primary dealer.

This article was translated from the original. Read the original version by our correspondent here.

Auction Structure and Schedule

According to the press release from the Reserve Bank of India, the underwriting auction will be held on Friday, June 19, 2026, using a multiple price-based method. On the day of the underwriting auction, primary dealers can electronically submit their bids for the ACU auction through the Reserve Bank of India Core Banking Solution, e-Kuber system, between 9:00 a.m. and 9:30 a.m.

Under the auction, the notified amount is set at ₹11,000 crore each for 6.03% GS 2029 and 6.68% GS 2033, while ₹5,000 crore each is notified for 7.24% GS 2055 and 7.50% GOI SGrB 2056. The minimum underwriting commitment per primary dealer is ₹262 crore for the 2029 and 2033 securities, and ₹120 crore for the 2055 and 2056 securities, with the minimum bidding commitment under ACU also set at the same level.

Impact on Primary Dealers and Payment Arrangements

This auction is conducted under the underwriting commitment scheme notified on November 14, 2007, which specifies the minimum underwriting commitment and additional competitive underwriting bid obligations for each primary dealer. This ensures a clear framework for demand support and participation in the government borrowing program.

The underwriting commission is credited to the current account of the respective primary dealers with the RBI on the day of the securities issuance. This arrangement helps streamline the auction execution and settlement process in the government securities market.

Our previous report discussed the measures by the government and RBI to increase foreign capital inflows into India, highlighting the potential role of tax relief on government bonds for FPIs, expansion of the Fully Accessible Route, and steps to enhance foreign exchange liquidity, along with arrangements such as FCNR(B) deposits and concessional forex swap windows to ease banking funding and balance of payments pressures.

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