Sam Nagarajan/ Bloomberg
The Reserve Bank of India said each primary dealer must underwrite bonds worth a minimum of Rs1.67 billion ($38.9 million) at the 12 April sale of the 7.38 % note maturing 2015.
The Reserve Bank of India set Rs1.18 billion as the minimum underwriting commitment at the sale of the 8.33% bonds maturing in 2036, it said in a faxed statement in Mumbai.
Bidding by all primary dealers together will be Rs29.94 billion for the 2015 bonds and Rs19.94 billion for the bonds maturing in 2036, the bank said.The auction to determine the underwriting fee will be held on 11 April.
Primary dealers, companies that trade directly with the central bank, underwrite government bond issues and get a commission based on the bids they make.
The government plans to sell Rs60 billion of the 7.38% eight-year bonds and Rs40 billion of the 8.33% 29-year bonds at the auction on 12 April, the first under its borrowing programme for the fiscal year that began this month.