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On February 6, 2026, the Reserve Bank of India (RBI) set the underwriting commission at ₹0.0092 per ₹100 for 2065 bonds and ₹0.0080 per ₹100 for 2040 bonds. This move ensures fair compensation for primary dealers, bolsters investor confidence, and reinforces India’s long-term debt market infrastructure.
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Key Highlights
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Commission Rates Announced: RBI fixed the underwriting commission at ₹0.0092 per ₹100 for 2065 bonds and ₹0.0080 per ₹100 for 2040 bonds, effective immediately.
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Purpose of Underwriting: These commissions compensate primary dealers who underwrite government securities, ensuring smooth debt issuance and market stability.
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Long-Term Bonds: The announcement covers ultra-long maturity bonds (2065) and medium-long bonds (2040), critical for India’s debt financing strategy.
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Market Impact: By setting transparent rates, RBI strengthens liquidity, investor trust, and risk-sharing mechanisms in the bond market.
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Policy Context: The move aligns with RBI’s broader efforts to maintain fiscal discipline and deepen India’s government securities market.
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Investor Confidence: Analysts note that predictable underwriting commissions help reduce volatility and encourage wider participation in auctions.
Why It Matters
This decision underscores RBI’s commitment to robust debt market operations, balancing fiscal needs with investor confidence. Transparent underwriting commissions are vital for efficient government borrowing and long-term economic stability.
Sources: Reserve Bank of India (RBI), Economic Times, Business Standard
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