The Reserve Bank of India (RBI) on Thursday announced that it will conduct an underwriting auction for the sale of Government Securities (G-Secs) amounting to ₹30,000 crore on December 19.
In a statement, the central bank said the Government of India has notified the sale (re-issue) of two dated securities through an auction scheduled for Friday. The securities include ₹18,000 crore of 6.01 per cent Government Security maturing in 2030 and ₹12,000 crore of 7.09 per cent Government Security maturing in 2074.
Under the existing underwriting commitment scheme notified on November 14, 2007, the Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction have been fixed for Primary Dealers (PDs). For the 6.01 per cent GS 2030, the MUC per PD has been set at ₹429 crore, with an equivalent minimum bidding commitment under ACU. For the 7.09 per cent GS 2074, the MUC has been fixed at ₹286 crore per PD.
The underwriting auction will be conducted using a multiple price-based method. Primary Dealers can submit bids electronically through the RBI’s e-Kuber system between 9:00 am and 9:30 am on December 19. The underwriting commission will be credited to the current accounts of the respective PDs with the RBI on the day of issuance of the securities.
Meanwhile, the RBI also released the cut-off details of its Open Market Operation (OMO) purchase of Government of India securities conducted on December 18, with a total notified amount of ₹50,000 crore. No security-wise amount was pre-notified for the operation.
The OMO covered seven government securities maturing between 2029 and 2054. These included 6.75 per cent GS 2029, 6.10 per cent GS 2031, 6.54 per cent GS 2032, 7.18 per cent GS 2033, 6.33 per cent GS 2035, 7.23 per cent GS 2039 and 7.09 per cent GS 2054.
The highest acceptance was recorded for the 6.54 per cent GS 2032 at ₹17,519 crore, followed by ₹11,801 crore for the 7.18 per cent GS 2033 and ₹9,494 crore for the 6.33 per cent GS 2035. The RBI also accepted ₹6,272 crore for the 6.10 per cent GS 2031, ₹2,744 crore for the 7.09 per cent GS 2054, ₹1,764 crore for the 6.75 per cent GS 2029 and ₹406 crore for the 7.23 per cent GS 2039.
The cut-off yields ranged from 6.1537 per cent for the 2029 security to 7.2983 per cent for the 2054 security, while cut-off prices ranged between ₹97.50 and ₹103.32. The RBI said detailed results of the OMO purchase will be released separately.
— ANI
