The Reserve Bank of India will conduct purchase and sale of government securities under Open Market Operation (OMO) for Rs 20,000 crore in two tranches of Rs 10,000 crore each. The auctions would be conducted on August 27 and September 3.
The securities for the first multi-security auction will be conducted using the multiple price method, an RBI statement said.
The central bank has said it'll buy government securities including 6.18 per cent, 8.24 per cent, 5.79 per cent and 7.95 per cent, which will mature on November 4, 2024, February 15, 2027, May 11, 2030, and August 28, 2032, respectively.
The central bank will sell the securities that mature between October 2020 and November 2020.
The RBI reserves the right to decide on the quantum of purchase or sale of individual securities. It'll also have the final say in accepting bids for less than the aggregate amount. The RBI will also have the right to accept or reject bids without giving any reasons.
Eligible participants should submit their offers via online modes on the RBI Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on August 27. The apex bank has said that physical bids/offers would be accepted only in the event of system failure.
"Such physical bid or offer should be submitted to financial markets operations department (Phone no: 022-22630982/022-27595515) in the prescribed form obtainable from RBI website (rbi.org.in/Scripts/BS_ViewForms.aspx) before 11.00 am," the RBI statement said.
The result of the auctions will be announced on the same day and successful participants should ensure availability of funds/securities in their current account/SGL account, the statement added. The securities for the second tranche auction on September 03, 2020, will be announced separately.
The Reserve Bank has said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure the orderly functioning of financial markets.
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