Mumbai (Maharashtra) [India], Mar 18 : The Reserve Bank of India (RBI) on Wednesday decided to conduct open market operations (OMOs) on March 20 in the form of purchase of an aggregate amount of Rs 10,000 crore of government securities through a multi-security auction using the multiple price method.
With the heightening of COVID-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.
"It is important to ensure that all market segments remain liquid and stable, and function normally," said the central bank in a statement.
"There is no notified amount against any of these securities within the aggregate ceiling of Rs 10,000 crore set for the operation."
The RBI said it reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than or higher than the aggregate amount of Rs 10,000 crore (including due to rounding off) and also to accept or reject any or all the offers either wholly or partially without assigning any reason.
The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on March 23.
Successful participants should ensure availability of the requisite amount of securities in their subsidiary general ledger accounts by 12 noon on that date.
( With inputs from ANI )