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RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr

RBI will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said on Monday

Topics
RBI | Reserve Bank of India | open market operations

Press Trust of India  |  Mumbai 

RBI, reserve bank of india

The (RBI) will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said on Monday.

The on August 31 had announced that it would conduct special simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each as part of its measures to foster orderly market conditions.

"The first auction is scheduled for September 10, 2020," the said in a statement.

It would be selling three securities totalling Rs 10,000 crore and also purchasing equal number of securities of the same amount.

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

The second tranche of auction would be conducted on September 17.

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

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First Published: Mon, September 07 2020. 16:40 IST
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