RBI announces special OMO purchase and sale of Govt Securities

RBI would buy and sale Rs 10000 crore of dated securities on 23 December 2019

On a review of the current liquidity and market situation and an assessment of the evolving financial conditions, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10000 crores each on 23 December 2019.

The Reserve Bank will purchase 6.45% GS 2029 security having maturity date of 07 October 2029 for an aggregate amount of Rs 10000 crore using the multiple price auction method

The Reserve Bank will also sell 6.65% GS 2020 security (maturity date of 09 April 2020), 7.80% GS 2020 (03 May 2020), 8.27% GS 2020 (09 June 2020) and 8.12% GS 2020 (10 December 2020) for an aggregate amount of Rs 10000 crore.

The RBI reserves the right to decide on the quantum of purchase/sale of individual securities, accept bids/offers for less than the aggregate amount, purchase/Sell marginally higher than the aggregate amount due to rounding-off effects and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.

The eligible participants should submit their bids/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 23 December 2019 (Monday).

The result of the auctions will be announced on the same day and successful participants should ensure availability of funds/securities in their Current account/SGL account, as the case may be, by 12 noon on 24 December 2019 (Tuesday).

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