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RBI to conduct auction of government securities through special OMOs

27 Dec 2019 Evaluate

Following a review of market liquidity situation and an assessment of the evolving financial conditions, the Reserve Bank of India (RBI) has decided to conduct one more simultaneous purchase and sale of government securities through special open market operations (OMOs) for Rs 10,000 crore each. The purchase and sale of government securities will be held on December 30, 2019.

The eligible participants should submit their bids/offers in electronic format on the RBI Core Banking Solution (E-Kuber) system on December 30, 2019. 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, as the case may be, on December 31, 2019.

The RBI further said it reserves the right to accept or reject any or all the bids or offers either wholly or partially without assigning any reasons. Recently, the central bank had conducted a similar OMO and purchased Rs 10,000 crore worth of long-term government securities and sold Rs 6,825 crore of four short-term securities through the special OMOs.

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