RBI to purchase govt securities worth Rs 10,000 crore on Sept 19

RBI to purchase govt securities worth Rs 10,000 crore on Sept 19



Mumbai: Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank of India (RBI) has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 Cr on Wednesday (September 19) through multi-security auction using the multiple price method.

In a statement RBI has said that based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of Government securities under OMO through multi-security auction using the multiple price method,

The RBI proposes to purchase G-secs having five different maturity dates.

There is an overall aggregate ceiling of Rs 10,000 Cr for all the securities in the basket put together. There is no security-wise notified amount.

According to the statement RBI reserves the right to:

Decide on the quantum of purchase of individual securities.

Accept offers for less than the aggregate amount of Rs 10,000 Cr.

Purchase marginally higher than the aggregate amount due to rounding-off effects.

Accept or reject any or all the offers either wholly or partially without assigning any reason.

The statement further says that the eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on September 19 (Wednesday).

Only in the event of system failure, physical offers would be accepted. Such physical offer should be submitted to Financial Markets Operations Department in the prescribed form obtainable from RBI website before 12.00 noon.

The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on September 21 (Friday). Successful participants should ensure availability of requisite amount of securities in their SGL account by 12 noon on September 21 (Friday).


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