RBI Announces Results of Additional Competitive Underwriting (ACU) Auction

The Reserve Bank of India (RBI) on 31 October 2025 released the results of the underwriting auction for Additional Competitive Underwriting (ACU) of select Government securities (G-Secs). The auction determines the underwriting commissions payable to Primary Dealers (PDs) who underwrite government debt issuances.

Key Details from the RBI Announcement

Security	Coupon Rate & Maturity	Notified Amount	Minimum Underwriting Commitment (MUC)	Additional Competitive Underwriting (ACU) Amount Accepted	Total Underwritten	Cut-off Commission Rate
Government Security 2028	5.91% GS 2028	₹9,000 crore	₹4,515 crore	₹4,485 crore	₹9,000 crore	0.15 paise per ₹100
Sovereign Green Bond 2054	6.98% GoI SGrB 2054	₹5,000 crore	₹2,520 crore	₹2,480 crore	₹5,000 crore	0.15 paise per ₹100
Government Security 2032	6.28% GS 2032	₹11,000 crore	₹5,502 crore	₹5,498 crore	₹11,000 crore	0.30 paise per ₹100

Background: What Is Underwriting of G-Secs?

• Primary Dealers (PDs) act as intermediaries in the primary issuance of government securities.
• Under Minimum Underwriting Commitment (MUC), PDs are mandated to underwrite a portion of each issue.
• The Additional Competitive Underwriting (ACU) allows PDs to competitively bid for additional portions, with commissions determined through auction.
• The RBI compensates PDs through underwriting commissions for assuming the risk of unsold securities in government borrowings.

Significance

• Ensures smooth conduct of government borrowing programmes.
• Enhances market stability and liquidity in the G-Sec market.
• Inclusion of the Sovereign Green Bond (SGrB) 2054 reflects India’s continued emphasis on green financing as part of its sustainable development goals.

Source: DD