RBI sets cut-off commission rate in underwriting auction for government securities conducted November 06, 2026, to incentivize primary dealer participation.
RBI Finalizes Underwriting Commission in Government Security Auction
On November 06, 2026, the Reserve Bank of India conducted an underwriting auction for Additional Competitive Underwriting (ACU) of specified government securities. The central bank has finalized the cut-off rate for the underwriting commission payable to Primary Dealers.
Underwriting auctions allow Primary Dealers to bid for the right to underwrite government bonds beyond their Minimum Underwriting Commitment (MUC). The cut-off commission rate determines the incentive for dealers to absorb and market government debt, especially in volatile markets.
This mechanism supports deeper government securities markets by encouraging dealer participation without direct fiscal cost. The finalized rates will influence dealer strategies and primary market liquidity, impacting secondary market trading and benchmark yield stability.
