The Reserve Bank of India will conduct simultaneous purchase and sale of government securities under open market operations for Rs 10,000 crore each on January 7
Listed public sector firms will have to maintain their m-cap at a certain level
RBI said it will conduct simultaneous purchase and sale of government securities under the Open Market Operations for an aggregate amount of Rs 10,000 crore each on December 17
The RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.
On October 1, the RBI would purchase three securities totalling Rs 10,000 crore and selling two securities of the same amount
The additional expenditure has pushed up government borrowing during April-June quarter with the Centre issuing dated securities aggregating to Rs 3,46,000 crore as against Rs 2,21,000 crore in Q1FY20
The RBI had announced, on August 25, 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
Experts don't rule out RBI intervention to keep yields in check
Retail buyers push Nifty Smallcap up 8% in August; mid-caps jump 6% against a 2% rise in large-caps
A final decision on the matter will be taken before the borrowing calendar for October 2020-March 2021 is announced in late-September
Mutual funds had requested regulator to allow higher limits for G-secs, T-bills
The yield on the most-traded 6.45 per cent 2029 note dropped 10 basis points to 6 per cent, extending Wednesday's 7-basis point fall.
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
Offers to purchase three securities, including 10-year benchmark govt bond
RBI's effort to address yield curve rise may not work as hoped
Additionally, sentiment at D-Street was bolstered by the latest amendments approved by the Cabinet Committee of Economic Affairs with respect to the Insolvency and Bankruptcy Code (IBC).
MF schemes deployed Rs 1.8 trillion in G-Secs and T-bills in August, which is 52 per cent higher than in last August
The Sebi chief said that the fragmented yield curve is a fundamental problem in the Indian bond market
Liquidity in G-Secs is mainly in a few benchmark securities, particularly the 10-year benchmark
The risk of a reversal exists, one of them being crude