PD Underwriting Commission Plunges 65% in FY25 Amid Strong G-sec Demand

• Primary Dealers' (PDs) underwriting commission slumped 65% in FY25, falling to Rs 14.5 crore from Rs 43.1 crore in FY24.
• The average commission rate dropped sharply from 0.3 paise to 0.1 paise per Rs 100 due to robust G-sec demand and minimal devolvement.
• Despite reduced commissions, PDs maintained strong participation, meeting all mandated minimum success ratios.
• The Reserve Bank of India's report notes early signs of recovery, with the average commission rising to 0.6 paise per Rs 100 in H1 FY26.
• Standalone Primary Dealers (SPDs) saw moderated growth in FY25, primarily due to weaker growth in G-secs and other marketable securities.

Why It Matters: Strong G-sec demand slashed PD underwriting commissions in FY25, though recovery signs emerge.