New Delhi [India], May 7 (ANI): The Government of India is set to conduct an underwriting auction for the sale of Government Securities totalling Rs 34,000 crore on May 08, 2026. This auction focuses on a new issuance designated as 'New GS 2036,' which the central bank scheduled for Friday.

According to the Reserve Bank of India (RBI), the entire notified amount for the new security is subject to this underwriting process.

'Government of India has announced the sale (issue) of Government Security, as detailed below, through auction to be held on May 08, 2026 (Friday).'

The central bank stated that the underwriting auction will follow a multiple price-based method. This format allows participants to submit bids at different price levels for the long-term government paper.

'As per the extant scheme of underwriting commitment notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) auction, applicable to each Primary Dealer (PD),' the RBI said in a release.

For the 'New GS 2036' security, the RBI established a Minimum Underwriting Commitment of Rs 810 crore for each Primary Dealer. Additionally, the minimum bidding commitment under the Additional Competitive Underwriting auction is fixed at Rs 810 crore per dealer.

Primary Dealers must submit their bids for the ACU auction through electronic channels. The RBI mandated the use of its Core Banking Solution, known as the e-Kuber system, for these financial transactions.

'PDs may submit their bids for ACU auction electronically through Reserve Bank of India Core Banking Solution (e-Kuber system) between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction,' the RBI notified.

The administrative guidelines from the central bank specify that the commission for these underwriting services is credited to the current accounts of the dealers on the day of the security issuance.

'The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of security.' (ANI)