RBI devolves over Rs 20,000 crore in Rs 31,000-crore bond auctions
Retail investors need banks to play the role of market maker, facilitate KYC, and turn G-Sec into an FD-like product from the government
The central bank on Friday devolved nearly the entire bond auction on primary dealers, as the markets were demanding higher yields for five-year and 10-year bonds being sold
Holding instrument till maturity could help in tackling volatility
HNI participation may be gradual; mutual funds see little impact on fund flows
The government and RBI are working on inclusion of Indian sovereign bonds by the second half of the next fiscal, Economic Affairs Secretary Tarun Bajaj said on Wednesday.
Annuity products may switch to floating rates from fixed, which generally give lower returns to customers
While they hold no more than 5% of GOI debt stock jointly, their buying and selling stood out in 2020, when Centre and state govts expanded their market borrowing plans
"The result will be announced on the same day and payment by successful bidders will have to be made on August 24, 2020 (Monday)," RBI said
Bond dealers said the market wanted the RBI to offer them higher coupon for the switch, as the source security is maturing just next month.
FPI limit in corporate bonds raised; special series to enable inclusion in global indices
If the volatility in the financial market continues for a prolonged period, it could also result in important implications for asset prices
The development would attract higher foreign flows as many overseas funds are mandated to track global indices
From Centre considering to issue G-secs with no limit for FPIs to more allotment for pensions that salaries in defence budget, here are top business headlines of the day
India may get included in global bond indices soon
There is fear that the RBI has no wiggle room for further rate cuts. Without rate support, yields will rise. This translates into a fall in prices for bonds
The fall in 10-year G-Sec yields is estimated to benefit state-owned banks by Rs 5,760 crore; Nifty PSU Bank rises 3%
Earlier this week, the central bank had conducted a similar open market operations (OMO) and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore
"This would open up a new channel for non-residents to undertake transactions in central government securities," the RBI Annual Report said
Doing away with the need for broad-basing of funds is expected to attract several new offshore funds to the country