Mumbai (Maharashtra) [India] April 1 (ANI): The Reserve Bank of India (RBI) on Wednesday announced that an underwriting auction, for the sale of Government Securities amounting to Rs 29,000 crore, will be held tomorrow.

According to the RBI, the Government of India has notified the sale (re-issue) of two Government Securities through an auction scheduled for tomorrow.

The securities on offer include Rs 17,000 crore of 6.68 per cent Government Security maturing in 2040 and Rs 12,000 crore of 7.43 per cent Government Security maturing in 2076.

Under the extant scheme of underwriting commitment notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under the Additional Competitive Underwriting (ACU) auction have been specified for Primary Dealers (PDs).

For the 6.68 per cent GS 2040, the MUC amount per PD has been fixed at Rs 405 crore. For the 7.43 per cent GS 2076, the corresponding amount has been set at Rs 286 crore.

The underwriting auction will be conducted through a multiple price-based method on Thursday. Primary Dealers (PDs) may submit their bids for the ACU auction electronically through the RBI's Core Banking Solution (e-Kuber system) between 9:00 am and 9:30 am on April 2.

The underwriting commission will be credited to the current accounts of the respective PDs with the RBI on the day of issue of the securities.

The Reserve Bank of India (RBI) earlier also announced that multiple state governments have raised a total of Rs 45,960 crore through the auction of State Government Securities (SGS).

Among the participating states, Andhra Pradesh raised Rs 3,000 crore through three securities with tenors of 13, 15 and 17 years. Arunachal Pradesh raised Rs 190 crore with a 20-year tenor, while Assam borrowed Rs 900 crore through a 15-year security. Delhi raised Rs 1,000 crore via a 10-year security. (ANI)