RBI to Conduct Underwriting Auction for Government Securities Worth Rs 29,000 Crore

The Reserve Bank of India (RBI) announced an underwriting auction scheduled for Thursday, aimed at the sale of Government Securities valued at Rs 29,000 crore. The process will involve a re-issue of two securities: Rs 17,000 crore at 6.68% maturing in 2040, and Rs 12,000 crore at 7.43% maturing in 2076.

Under the underwriting commitment scheme first notified in 2007, specific Minimum Underwriting Commitment (MUC) and Additional Competitive Underwriting (ACU) bidding commitments are set for Primary Dealers (PDs), with Rs 405 crore for the 2040 securities and Rs 286 crore for the 2076 securities. The auction, adopting a multiple price-based method, will take place through the RBI's e-Kuber system between 9:00 am and 9:30 am.

In parallel, the RBI has disclosed that state governments have managed to raise Rs 45,960 crore via State Government Securities auctions. States like Andhra Pradesh raised Rs 3,000 crore, Assam Rs 900 crore, and Delhi Rs 1,000 crore across varied tenors. These financial maneuvers underline a significant activity in India's securities market as governments seek to bolster their financial positions.