The Reserve Bank of India (RBI) on Friday announced the results of the underwriting auction conducted for Additional Competitive Underwriting (ACU) of three Government of India securities, setting cut-off commission rates for primary dealers.

According to the central bank, the auction was held on May 22, 2026, for the 6.03 per cent Government Security (GS) 2029, a 6.68 per cent Government Security (GS) maturing in 2033, and a 7.24 per cent Government Security (GS) maturing in 2055. The ACU process allows primary dealers to competitively bid for the right to underwrite additional portions of the notified amount of government bonds, over and above their minimum underwriting commitments.

For the 6.03 per cent GS 2029, the notified amount was ₹11,000 crore. The minimum underwriting commitment (MUC) stood at ₹5,502 crore, with the remaining ₹5,498 crore accepted under ACU. The total amount underwritten was thus ₹11,000 crore. The cut-off commission rate for the ACU portion was set at ₹1.78 per ₹100.

In the case of the 6.68 per cent GS 2033, the notified amount was ₹11,000 crore. The MUC was ₹5,502 crore, while the ACU amount accepted was ₹5,498 crore, taking the total amount underwritten to ₹11,000 crore. The ACU commission cut-off rate here was 0.88 paise per ₹100.

And finally, for the 7.24 per cent GS 2055, the notified amount was ₹10,000 crore. The MUC was ₹5,019 crore, while the ACU amount accepted was ₹4,981 crore, taking the total amount underwritten to ₹10,000 crore. The ACU commission cut-off rate here was 0.88 paise per ₹100.

The RBI said that the actual auction for the sale of these securities would also be held on May 22, 2026, subsequent to the completion of the underwriting process.

Underwriting of government securities is a critical function performed by primary dealers to ensure smooth borrowing operations by the government. In this system, primary dealers commit to subscribing to unsold portions of government bond issuances, thereby assuring full subscription.

The ACU mechanism allows the government to allocate additional underwriting amounts through a competitive bidding process, where the commission rate is determined based on market demand.

The RBI’s announcement comes as part of its routine government securities issuance calendar, which is a key instrument for managing the fiscal requirements of the government and influencing liquidity in the financial system.

Primary dealers, a select set of financial institutions authorised by the RBI, play an essential role in underwriting and distributing these securities in the secondary market.

Published on May 22, 2026