New Delhi, May 29 -- The Reserve Bank of India has ensured 100% subscription cover for the government's Rs 28,000 crore bond sale, after completing an Additional Competitive Underwriting (ACU) auction and setting commission rates for Primary Dealers. The move guarantees that the entire notified amount will be picked up even if investor demand falls short in Friday's main auction.

According to the RBI release, two long-dated securities were underwritten: Rs 17,000 crore of 6.68% Government Security maturing in 2040 and Rs 11,000 crore of 7.43% Government Security maturing in 2076.

Primary Dealers (PDs) are first required to meet a Minimum Underwriting Commitment (MUC). For the 6.68% GS 2040, the MUC was Rs 8,505 crore, or about half the ...