Government To Auction ₹28,000 Crore Worth of Securities on December 12

The Government of India has announced the sale (re-issue) of government securities worth ₹28,000 crore through an auction on December 12, 2025. The auction will be conducted under the existing underwriting scheme notified on November 14, 2007.

Primary Dealers (PDs) will participate in the underwriting process, which includes Minimum Underwriting Commitment (MUC) and Additional Competitive Underwriting (ACU) bidding. The securities offered include 6.68% GS 2040 and 6.90% GS 2065, with notified amounts of ₹16,000 crore and ₹12,000 crore respectively.

Auction Details and Methodology

The underwriting auction will be held on December 12, 2025, using a multiple price-based method. PDs can submit bids for the ACU auction electronically through RBI’s Core Banking Solution (e-Kuber system) between 09:00 A.M. and 09:30 A.M.

The notified amount for 6.68% GS 2040 is ₹16,000 crore, while 6.90% GS 2065 is ₹12,000 crore. Each PD has a MUC of ₹381 crore for GS 2040 and ₹286 crore for GS 2065, with the same figures applicable for minimum bidding commitments under ACU.

Underwriting Commitments for Primary Dealers

Under the extant scheme, PDs are required to fulfil both MUC and ACU obligations during the auction. For 6.68% GS 2040, the MUC per PD is ₹381 crore, and for 6.90% GS 2065, it is ₹286 crore.

These commitments ensure adequate participation and liquidity in the underwriting process. The underwriting commission will be credited to the PDs’ current accounts with RBI on the day the securities are issued.

Securities Offered and Their Features

The securities being re-issued include 6.68% GS 2040 and 6.90% GS 2065, which are long-term government bonds. These instruments provide fixed interest rates and are part of the government’s borrowing programme to meet fiscal requirements.

Investors typically use these securities for portfolio diversification and stable returns. The auction process ensures transparent price discovery and efficient allocation among market participants.

Read More: RBI Governor Urges Banks to Pass on Rate Cuts.

Conclusion

The ₹28,000 crore auction of government securities on December 12, 2025, reflects the government’s ongoing efforts to manage its borrowing programme effectively. The participation of PDs under the MUC and ACU framework ensures smooth underwriting and distribution of securities.

With RBI facilitating the process through its e-Kuber platform, the auction is expected to maintain transparency and efficiency. These measures support liquidity in the bond market and strengthen India’s debt management framework.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.