RBI purchases Rs 10,000-cr G-secs through OMO

By: | Published: July 18, 2018 2:45 AM

The Reserve Bank of India (RBI) on Tuesday announced the purchase of government securtities (G-secs) under open market operations (OMO). The move came after the assessment of prevailing liquidity conditions, a press release by the RBI said.

The move came after the assessment of prevailing liquidity conditions. (PTI)

The Reserve Bank of India (RBI) on Tuesday announced the purchase of government securtities (G-secs) under open market operations (OMO). The move came after the assessment of prevailing liquidity conditions, a press release by the RBI said.

The RBI plans to raise an aggregate of Rs 10,000 crore on July 19 through multi-security auction using the multiple price method. However, the security wise breakdown of the amount was not given.

There are a total of five categories of dated G-secs. Namely, 8.27% GS 2020 maturing on June 9, 2020. Second category, the 8.20% GS 2022 maturing on February 15, 2022 . Next being the 7.35% GS 2024 which becomes due on June 22, 2024, followed by the 8.33% GS 2026 which expires on July 9, 2026 and the 7.61% GS 2030 paper maturing on May 09, 2030.

The auction results will be announced on the day of the issue itself. Successful participants should ensure availability of requisite amount of securities in their SGL account by 12 noon on July 20.

Vijay Sharma, senior executive vice president at PNB Gilts, said the market has been expecting OMOs and this notification has come in line with that, “Thse OMO operations will now be a regular phenomenon just like the market has been expecting it. Post this OMO settlement, the benchmark yield will soften by around three basis points,” Sharma explained.

In a similar OMO purchase last month, the RBI had notified it would raise Rs 10,000 crore, for which it had received just over Rs 40,000 crore

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