Liquidity-Rigging Commission Rate Boosts Indian Market Stability
The Reserve Bank of India has established cut-off rates for underwriting commissions aimed at maintaining market liquidity. This action reinforces economic stability in a volatile global environment.
On September 11, 2026, the Reserve Bank of India conducted an underwriting auction for additional government securities. The cut-off rate for underwriting commission was set at 2% for bonds with a coupon rate of 6.20% due in 2029 and 1.80% for those with a 6.57% yield maturing in 2033, while new 10-year bonds yielded 1.29%. This decision reflects the central bank's strategy to maintain liquidity in the market and encourage participation by primary dealers. The move underscores efforts to ensure economic stability amid global uncertainties, with significant implications for public and private sector finances.
Source: Reserve Bank of India