Latest news with #AdditionalCompetitiveUnderwriting
News18
3 days ago
- Business
- News18
RBI announces underwriting auction results for two government securities
Mumbai (Maharashtra) [India], August 14 (ANI): The Reserve Bank of India (RBI) on Thursday announced the results of the underwriting auction conducted for Additional Competitive Underwriting (ACU) of two Government of India securities, setting cut-off commission rates for primary dealers. According to the central bank, the auction was held on August 14, 2025, for the 6.01 per cent Government Security (GS) 2030 and a new Government Security 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 6.01 per cent GS 2030, the notified amount was Rs 15,000 crore. The minimum underwriting commitment (MUC) stood at Rs 7,518 crore, with the remaining Rs 7,482 crore accepted under ACU. The total amount underwritten was thus Rs 15,000 crore. The cut-off commission rate for the ACU portion was set at 0.40 paise per Rs 100. In the case of the new GS 2055, the notified amount was Rs 13,000 crore. The MUC was Rs 6,510 crore, while the ACU amount accepted was Rs 6,490 crore, taking the total amount underwritten to Rs 13,000 crore. The ACU commission cut-off rate here was higher, at 0.78 paise per Rs 100. The RBI said that the actual auction for the sale of these securities would also be held on August 14, 2025, 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 providing an assurance of 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. (ANI) view comments First Published: August 14, 2025, 13:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India Gazette
10-06-2025
- Business
- India Gazette
RBI to re-issue Sovereign Green Bonds of Rs 5000 cr in upcoming Rs 30,000 cr govt securities auction
New Delhi [India], June 10 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of sovereign green bonds (SGrBs) as part of the upcoming government securities (G-Secs) auction scheduled for June 13, 2025. As per a notification by RBI on Monday, the total notified amount for sale is Rs 30,000 crore, which includes Rs 5,000 crore of 6.98 per cent SGrBs maturing in 2054. RBI said 'Government of India (GoI) has announced the sale (re-issue) of three dated securities for a notified amount of Rs 30,000'. Sovereign green bonds are government-issued bonds specifically aimed at financing environmentally sustainable projects. The proceeds from these bonds are allocated to sectors such as renewable energy, clean transportation, sustainable water management, and energy efficiency. These bonds serve both to promote climate-conscious growth and to attract environmentally focused investors. In addition to the sovereign green bonds, two other dated securities will also be re-issued: Rs 11,000 crore of 6.79 per cent government securities maturing in 2031, and Rs 14,000 crore of 7.09 per cent securities maturing in 2074. The auction will be conducted using a multiple price method via RBI's e-Kuber platform. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m. on the auction day. The results will be announced on the same day, and successful bidders will need to make payments on June 16, 2025. The government also retains the option to accept up to Rs 2,000 crore of additional subscriptions against each of the securities. The stocks will be eligible for 'When Issued' trading from June 10 to June 13, 2025, allowing investors to trade the securities even before they are formally issued. Primary Dealers may submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day. The re-issuance of sovereign green bonds highlights that the government's continued commitment to fund green infrastructure and sustainability initiatives, aligning with India's broader environmental and economic goals. (ANI)
India Gazette
03-06-2025
- Business
- India Gazette
RBI announces reissue of two Govt securities worth Rs 32000 crore, also open to accept extra Rs 2000 cr
Mumbai (Maharashtra) [India], June 3 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore. A 're-issue' means the RBI is selling more of a bond that is already available in the securities market. This move is part of the government's regular borrowing program. The two securities being re-issued are the 6.92 per cent Government Security (GS) maturing on November 18, 2039, and the 6.90 per cent GS maturing on April 15, 2065. Each of these bonds will be issued for Rs 16,000 crore. Additionally, the RBI has kept the option open to accept up to Rs 2,000 crore extra for each security, depending on market demand. According to the RBI's announcement on Monday, the auction will be held on Friday, June 6, 2025. The settlement, when investors make payments and receive the securities, will take place on Monday, June 9, 2025. The sale will be conducted through the RBI's Core Banking Solution system, known as e-Kuber. Both competitive and non-competitive bids can be submitted electronically on the day of the auction. Non-competitive bids will be accepted between 12:30 p.m. and 1:00 p.m., while competitive bids can be submitted between 12:30 p.m. and 1:30 p.m. The auction will follow a multiple price method, meaning successful bidders will receive the securities at the prices they quote. The central bank also stated that primary dealers can bid for underwriting a part of the issue through the Additional Competitive Underwriting (ACU) facility. These bids will be accepted from 10:30 a.m. to 11:00 a.m. on the same day. The securities will be available for 'When Issued' trading from June 3 to June 6, allowing early trading before the official issuance. Retail investors can also participate through the RBI Retail Direct platform. Moreover, 5 per cent of the notified amount is reserved for eligible individuals and institutions under the non-competitive bidding scheme. This auction is part of the RBI's regular debt management process and offers a secure investment opportunity to investors. The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed. The official GDP growth data for the January-March (Fourth quarter) also showed that the economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. (ANI)
India Gazette
03-06-2025
- Business
- India Gazette
RBI announces reissue of two Govt securities worth Rs 32000 crore
Mumbai (Maharashtra) [India], June 3 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore. A 're-issue' means the RBI is selling more of a bond that is already available in the securities market. This move is part of the government's regular borrowing program. The two securities being re-issued are the 6.92 per cent Government Security (GS) maturing on November 18, 2039, and the 6.90 per cent GS maturing on April 15, 2065. Each of these bonds will be issued for Rs 16,000 crore. Additionally, the RBI has kept the option open to accept up to Rs 2,000 crore extra for each security, depending on market demand. According to the RBI's announcement on Monday, the auction will be held on Friday, June 6, 2025. The settlement, when investors make payments and receive the securities, will take place on Monday, June 9, 2025. The sale will be conducted through the RBI's Core Banking Solution system, known as e-Kuber. Both competitive and non-competitive bids can be submitted electronically on the day of the auction. Non-competitive bids will be accepted between 12:30 p.m. and 1:00 p.m., while competitive bids can be submitted between 12:30 p.m. and 1:30 p.m. The auction will follow a multiple price method, meaning successful bidders will receive the securities at the prices they quote. The central bank also stated that primary dealers can bid for underwriting a part of the issue through the Additional Competitive Underwriting (ACU) facility. These bids will be accepted from 10:30 a.m. to 11:00 a.m. on the same day. The securities will be available for 'When Issued' trading from June 3 to June 6, allowing early trading before the official issuance. Retail investors can also participate through the RBI Retail Direct platform. Moreover, 5 per cent of the notified amount is reserved for eligible individuals and institutions under the non-competitive bidding scheme. This auction is part of the RBI's regular debt management process and offers a secure investment opportunity to investors. The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed. The official GDP growth data for the January-March (Fourth quarter) also showed that the economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. (ANI)
India Gazette
23-05-2025
- Business
- India Gazette
Rs 27,000 crore government securities auction fully subscribed
New Delhi [India], May 23 (ANI): Government securities (G-sec) auction of Rs. 27,000 crore bonds in two tranches on Friday was fully subscribed, reflecting strong investor demand. The cut-off price for both bonds was above par. The 6.75 per cent G-sec with a notified amount of Rs. 15,000 crore maturing in 2029 was sold at a cut-off price of Rs 103.49, yielding 5.8675 per cent. The 7.09 per cent G-sec with a notified amount of Rs 12,000 crore, maturing in 2054, was sold at a cut-off price of Rs 103.39, yielding 6.8197 per cent. The bond yield is the return an investor expects to receive each year over its term to per the auction results, the development of primary dealers was stated as 'NIL' for both thebonds, indicating healthy demand for G-sec from the investor community. Primary Dealers, commonly referred to as PDs, are financial institutions authorized by the RBI to buy and sell government securities. The underwriting auction was conducted through multiple price-based methods on May 23 (Friday) between 09:00 A.M. and 09:30 A.M. Bids under Additional Competitive Underwriting (ACU) auction was done electronically through the Core Banking Solution (E-Kuber) System. Earlier this year, on March 27, the government had notified the indicative calendar for theissuance of government-dated securities, including Sovereign Green Bonds (SGrBs), for thefirst half of the fiscal year 2025-26 (April 1, 2025, to September 30, 2025). The indicative calendar for such auctions is released beforehand in order to enable institutional and retail investors to plan their investments efficiently and to provide transparency and stability to the Government Securities market. (ANI)
