RBI broadcasts underwriting public sale for presidency securities value ₹32,000 crore to make sure full subscription.
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REUTERS
The Reserve Financial institution of India (RBI) has introduced an underwriting public sale for the sale of presidency securities value ₹32,000 crore on Friday. The public sale will cowl each subject of latest authorities safety and the re-issue of an present one.
“The underwriting public sale can be performed by means of a number of price-based technique on July 04, 2025 (Friday). PDs might submit their bids for ACU public sale electronically by means of Core Banking Resolution (E-Kuber) System,” the RBI stated. The securities embrace a brand new Authorities Safety (GS) maturing in 2040 and a re-issue of the 6.90 per cent GS maturing in 2065, every carrying a notified quantity of ₹16,000 crore.
These bonds can be offered by means of a aggressive bidding course of involving Main Sellers (PDs).In easy phrases, an underwriting public sale is performed by the RBI to make sure that the complete quantity of presidency bonds being issued is subscribed, even when market demand is unsure. Main Sellers act as underwriters on this course of, they commit to buying any unsold portion of the bonds. This mechanism helps the federal government elevate funds easily for its expenditure wants.As per the RBI’s underwriting dedication scheme, every PD has a Minimal Underwriting Dedication (MUC) of ₹381 crore for every of the 2 securities.
They’re additionally required to put bids for at the very least ₹381 crore below the Extra Aggressive Underwriting (ACU) public sale.The public sale will comply with a a number of price-based technique and can be held by means of the RBI’s E-Kuber system. The underwriting fee, or price paid to PDs for his or her dedication, can be credited to their accounts on the day the securities are issued.This public sale is a part of the federal government’s common borrowing program and highlights the RBI’s function in facilitating easy debt market operations.
Revealed on July 4, 2025