Govt to buyback inflation-indexed bond worth Rs 3,298 crore to infuse liquidity

The government today said it will buyback the WPI-linked inflation indexed bonds worth Rs 3,298.72 crore on March 28, a move aimed at infusing liquidity into the markets.

In a statement, the Finance Ministry announced repurchase of "1.44% Inflation Indexed Government Stock-2023" through reverse auction for an aggregate amount of Rs 3,298.72 crore (face value)".

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The repurchase by the government will be undertaken to redeem the Government Stocks prematurely by utilising surplus cash balances, it said, adding the repurchase is purely ad hoc in nature.

Auction for securities will be on price based auction format. It will be conducted using multiple price method. Bids for the auction should be submitted in electronic format on the RBI Core Banking Solution (E-Kuber) system on March 28, the Ministry said. The result of the auctions will be announced on the same day.

In another statement, it said Government Stock 2016 and 10.71% Government Stock 2016 are repayable at par on April 12 and April 19, respectively.