On a review of current liquidity and financial conditions, the Reserve Bank on Thursday announced that it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 100 billion each on March 25, 2021.
The central bank will purchase three government securities worth Rs 100 billion maturing in November 2025, December 2030 and March 2035. These include 5.15% GS 2025, 5.85% GS 2030, and 6.22% GS 2035.
The Reserve Bank will simultaneously sell two government securities maturing in May 2022 and June 2022 using the multiple price auction method.
Eligible participants should submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on Mar. 25, 2021, RBI said.
"The Reserve Bank reserves the right 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 and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons," it added.
The result of the auction will be announced on the same day and successful participants should ensure availability of funds/securities in their SGL account by 12 noon on Mar. 26, 2021, the central bank said.