After having analyzed the current economical status and liquidity in the Indian market, the Reserve Bank of India has decided to conduct multiple side-by-side buys and sell transactions of government securities worth Rs 15,000 crore each under the Open Market Operation (OMO), Hindustan Times reported.
“The Reserve Bank will purchase the following securities using the multiple price auction method,” the bank said in a statement. While the auction will allow investors to participate in these transactions, the statement briefs that “the bank will reserve the rights to:
- decide on the quantum of purchase/sale of individual securities.
- accept bids/offers for less than the aggregate amount.
- purchase/sell marginally higher/lower than the aggregate amount due to rounding-off.
- accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.”
All eligible participants are required to submit their bids/offers in electronic mode on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 AM and 11:00 AM today on March 04, 2021.
In case of an online system failure, the RBI will accept physical bids/offers which would be required to be submitted to Financial Markets Operations Department.
The auction’s results will be announced today itself and participants have been asked to ensure availability of funds/securities in their Current account/SGL account, said the press release indexed ‘2020-2021/1143’.