Mumbai (Maharashtra) [India], April 9 (ANI): The Reserve Bank of India (RBI) on Thursday announced that an underwriting auction for the sale of Government Security amounting to Rs 34,000 crore will be held tomorrow.

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

The security on offer is worth Rs 34,000 crore of 6.48 per cent Government Security maturing in 2035, with Minimum Underwriting Commitment (MUC) amount per Primary Dealer (PD) fixed at Rs 810 crore.

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).

The underwriting auction will be conducted through a multiple price-based method on Friday. Primary Dealers (PDs) may submit their bids for the Additional Competitive Underwriting (ACU) auction electronically through the Reserve Bank of India's Core Banking Solution (e-Kuber system) between 9:00 am and 9:30 am on April 10.

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 18,159 crore through the auction of State Government Securities (SGS).

Among the participating states, Andhra Pradesh plans to raise Rs 2,200 crore through two securities with tenors of 12 and 25 years. Himachal Pradesh will raise Rs 900 crore with a 10-year tenor, while Maharashtra will borrow Rs 3,600 crore through three securities worth Rs 800, 1,600, and 1,200 with tenors of 5, 13, and 23 years, respectively. Meghalaya will raise Rs 259 crore via a 10-year security. (ANI)