RBI announces auction sale of Government securities

by Psu Connect
Date: 26-04-24

According to the circular, the primary dealers can submit their bids electronically through the E-Kuber System between 09:00 A.M. and 09.30 A.M. on Friday.

RBI announces auction sale of Government securities

The Reserve Bank of India has announced the auction for the sale of Government Securities worth Rs 32,000 crore. The auction is scheduled to take place on Friday and aims to facilitate the sale or (re-issue) of Government Securities through a multiple price-based method.

"Underwriting Auction for sale of Government Securities for Rs32,000 crore on April 26, 2024 Government of India has announced the sale (re-issue) of Government Securities, as detailed below, through auctions to be held on April 26, 2024" as per the RBI.

According to RBI, the primary dealers are required to fulfill the Minimum Underwriting Commitment (MUC) and minimum bidding commitment under Additional Competitive Underwriting (ACU) for the auction.

The underwriting commission will be credited to the current account of the respective primary dealers with the Reserve Bank of India (RBI) on the day of the issue of securities. The auction presents an opportunity for primary dealers to participate in the underwriting process and contribute to the government's financing activities.

The auction signifies the government's continued efforts to manage its borrowing program efficiently and meet its funding requirements. With the auction scheduled for April 26, RBI urges primary dealers to prepare and participate actively to support the smooth conduct of the auction and ensure successful outcomes for all stakeholders.