RBI set the cut-off underwriting commission rates for the government securities auction on July 17, 2026

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Highlights

The Reserve Bank of India set the cut-off underwriting commission rate for 6.03% GS 2029 at 0.44 paise per ₹100, with a total of ₹11,000 crore fully underwritten.
For 6.68% GS 2033, the cut-off rate was set at 0.34 paise per ₹100, and for 7.24% GS 2055, it was set at 0.62 paise, with ₹11,000 crore and ₹10,000 crore underwritten, respectively.
The highest commission rate for the long-term 2055 security and the lowest for 2033 reflect the difference in underwriting costs according to maturity period.

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

Structure of Government Securities Auction

According to the Reserve Bank of India press release, in the additional competitive underwriting auction held on July 17, 2026, the cut-off underwriting commission rate for 6.03% GS 2029 was set at 0.44 paise per ₹100. The notified amount for this security was ₹11,000 crore, with a minimum underwriting commitment of ₹5,502 crore and accepted additional competitive underwriting of ₹5,498 crore, making the total underwritten amount ₹11,000 crore.

For 6.68% GS 2033, the cut-off rate was set at 0.34 paise per ₹100. This issue had a notified amount of ₹11,000 crore, a minimum underwriting commitment of ₹5,502 crore, and accepted additional competitive underwriting of ₹5,498 crore, totaling ₹11,000 crore underwritten.

For 7.24% GS 2055, the cut-off rate was set at 0.62 paise per ₹100. Against the notified amount of ₹10,000 crore for this security, the minimum underwriting commitment was ₹5,019 crore and the accepted additional competitive underwriting was ₹4,981 crore, making the total underwritten amount ₹10,000 crore.

Market Participation and Impact on Borrowing Program

These rates indicate that primary dealers priced government securities with different maturities based on their risk and demand. The highest cut-off commission rate for the long-term 2055 security and the lowest for the 2033 security reflect the difference in underwriting costs according to maturity.

The auction for the sale of these securities is also scheduled for July 17, 2026. The underwriting arrangement supports the government's borrowing process, as it helps ensure the required demand coverage for the issuance.

In our previous report, we discussed the changes being made to the structure of Nifty Fixed Income indices by NSE Indices Limited from July 20, 2026, highlighting the addition of two Rajasthan SDL securities to different Nifty bond and SDL indices, and the potential role this plays in increasing their market visibility, weight, and relevance for benchmark-based investors.

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