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RBI to conduct simultaneous purchase, sale of govt securities next week

The RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.

Topics
Reserve Bank of India | Government securities

Press Trust of India 

RBI, reserve bank of india
The decision was taken after a review of the current liquidity and financial conditions, the RBI said in a statement.

The Reserve Bank on Thursday announced to conduct simultaneous purchase and sale of under open market operations (OMOs) for Rs 10,000 crore each on November 26.

The decision was taken after a review of the current liquidity and financial conditions, the RBI said in a statement.

Simultaneous purchase and sale of under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.

On November 26, the RBI will purchase three of different maturity dates aggregating to Rs 10,000 crore and sell two securities aggregating to the same amount using the multiple price auction method.

The RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.

The result of the auctions will be announced on the same day.

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First Published: Thu, November 19 2020. 22:04 IST
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