RBI fixes MSS ceiling at Rs 30,000 crore for current fiscal

By: | Published: June 22, 2016 11:39 PM

Reserve Bank today said the ceiling under Market Stabilisation Scheme (MSS), a tool to manage liquidity, has been fixed at Rs 30,000 crore for the current fiscal.

MSS are securities issued with the objective of providing RBI with a stock of securities with which it can intervene in the market for managing liquidity. (AFP)MSS are securities issued with the objective of providing RBI with a stock of securities with which it can intervene in the market for managing liquidity. (AP)

Reserve Bank today said the ceiling under Market Stabilisation Scheme (MSS), a tool to manage liquidity, has been fixed at Rs 30,000 crore for the current fiscal.

“In accordance with the provisions of the Memorandum of Understanding on the Market Stabilisation Scheme (MSS), the ceiling for the outstanding balance under the MSS for the fiscal year 2016-17 has been fixed at Rs 30,000 crore”, RBI said in a notification.

This ceiling will be reviewed when the outstanding balance reaches the threshold limit of Rs 15,000 crore.

The current MSS outstanding balance is zero, RBI added.

MSS are securities issued with the objective of providing RBI with a stock of securities with which it can intervene in the market for managing liquidity.

These securities are not issued to meet government’s expenditure. The scheme was launched in 2004.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition