Illustration showing the underwriting amount, cut-off rate of under - Writing fee accepted by the Reserve Bank and devolvement on PDs.
Annexure II
(Ref. Paragraph 4(iii) of the Guidelines)
RBI sells GOI security of 5-year tenure for an aggregate amount of Rs. 2000 crore (nominal) through an auction. Assuming that PDs submit bids for underwriting as stated below, the amount of underwriting fee payable and the devolvement would be as under: |
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(Rs. in crore) |
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Name of PD |
Amount of underwriting offered |
Cumulative figure |
Underwriting fee quoted (Paise) |
Cut-off rate |
Underwriting amt. Accepted by RBI |
Underwriting fee payable |
A |
100 |
100 |
15 |
- |
100 |
0.1500 |
B |
250 |
350 |
16 |
- |
250 |
0.4000 |
C |
350 |
700 |
17 |
- |
350 |
0.5950 |
D |
300 |
1000 |
18 |
- |
300 |
0.5400 |
E |
200 |
1200 |
19 |
- |
200 |
0.3800 |
F |
300 |
1500 |
20 |
20 |
300 |
0.6000 |
G |
550 |
2050 |
21 |
Rejected |
- |
- |
H |
300 |
2350 |
22 |
Rejected |
- |
- |
Total |
2350 |
1500 |
2.6650 |
Setting off of successful bids in the Auction |
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Name of PD |
Bids tendered in the auction |
Bids accepted in the auction |
Amount of underwriting obligation |
Possible devolvement on each PD |
A |
100 |
50 |
100 |
50 |
B |
250 |
200 |
250 |
50 |
C |
350 |
350 |
350 |
- |
D |
300 |
250 |
300 |
50 |
E |
200 |
120 |
200 |
80 |
F |
300 |
260 |
300 |
40 |
G |
150 |
75 |
- |
- |
H |
135 |
95 |
- |
- |
Total |
1785 |
1400 |
1500 |
270 |
Amount of Devolvement on PDs/Reserve Bank of India |
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Scenario |
Amount of Devolvement |
Devolvement on PDs |
Devolvement |
Case I |
135 |
135 * |
0 |
Case II |
270 |
270 |
0 |
Case III |
500 |
270 |
230 |
|
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