The Reserve Bank of India (RBI) on Thursday has resolved to organise a concurrent purchase and sale of government securities under open market operations (OMO) for Rs. 10,000 crore each on April 27 reassessing the prevailing liquidity and market circumstances.
Consequently the RBI has taken up the responsibility of purchasing the securities maturing in 2026, 2028, 2029 and 2030, that is worth Rs. 10,000 crore. It has also come to the conclusion of selling securities also of valuation Rs. 10,000 crore maturing in June 2020, October 2020 and April 2021.
Furthermore RBI has the right to fix the amount of money of purchase/ sale for individual securities. It may agree/ refuse “any or all the bids and offers” either completely or partially without giving any valid reason.
RBI core banking solution (E- Kuber) system will be accessible to the entitled entrants from Monday. They need to place their bids or offers online. The result and name of the deserving participant will be declared on the same day.
The auction of g- section for Rs. 21,000 crore is to be held on Friday. RBI has stipulated a minimum underwriting and bidding commitment for the same and will organise this through multiple auction method.