India prepares for a ₹33,000 crore government securities underwriting auction

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Government securities underwriting auction

Highlights

The Government of India will hold an underwriting auction on 30 June 2026 for four government securities worth ₹33,000 crore.
The auction will have notified issuances of ₹9,000 crore, ₹12,000 crore, ₹9,000 crore and ₹3,000 crore, respectively, for 6.20% GS 2029, 6.57% GS 2033, 7.63% GS 2056 and 7.50% GOI SGrB 2056.
Clarifying bidding discipline and MUC/ACU obligations reduces risk for primary dealers and supports transparency in government borrowing.

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

Auction structure and bidding schedule

According to a press release from the Reserve Bank of India, the underwriting auction will be held on Friday, 30 October 2026, using a multiple-price method. Primary dealers can submit their bids electronically for the additional competitive underwriting auction through the RBI’s core banking solution, the e-Kuber system, between 09:00 and 09:30 on the same day.

The auction includes notified issuances of ₹9,000 crore for 6.20% GS 2029, ₹12,000 crore for 6.57% GS 2033, ₹9,000 crore for 7.63% GS 2056, and ₹3,000 crore for 7.50% GOI SGrB 2056. Under the existing underwriting arrangements notified on 14 November 2007, the MUC and an equal minimum ACU bid obligation for each primary dealer are ₹215 crore for 6.20% GS 2029 and 7.63% GS 2056, while they are ₹286 crore for 6.57% GS 2033 and ₹72 crore for 7.50% GOI SGrB 2056.

Impact on primary dealers and the government borrowing programme

This framework clarifies bidding discipline and issuance support for primary dealers, helping the government’s market borrowing programme proceed as scheduled. Including securities with different maturities and a gold bond component also allows investor demand to be balanced across diverse segments.

On the day the securities are issued, the underwriting commission will be credited to the respective primary dealers’ current accounts with the RBI. This arrangement is considered important for maintaining predictability in the government securities market and ensuring the smooth execution of the auction process.

our earlier report on the Centre’s disinvestment programme discussed its pattern, noting that most of the funds raised during FY 2016–2027 came from market-based instruments such as ETFs, public offerings and buybacks, while strategic sales accounted for a relatively small share. The article highlighted the IDBI Bank stake deal as an exceptional strategic transaction and also noted that, upon its completion, disinvestment proceeds for the current year could exceed the budget estimate.

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