RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr

RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr

PTIUpdated: Monday, September 07, 2020, 05:43 PM IST
article-image

The Reserve Bank of India (RBI) will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said on Monday.

The RBI on August 31 had announced that it would conduct special simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each as part of its measures to foster orderly market conditions.

"The first auction is scheduled for September 10, 2020," the RBI said in a statement.

It would be selling three securities totalling Rs 10,000 crore and also purchasing equal number of securities of the same amount.

The result of the auctions will be announced on the same day.

The second tranche of auction would be conducted on September 17.

Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.

RECENT STORIES

Indian Delegation Reaches Washington For Trade Talks, Key Issues On Agriculture & Tariffs On Agenda

Indian Delegation Reaches Washington For Trade Talks, Key Issues On Agriculture & Tariffs On Agenda

Ola Electric Shares Surge 17% After Q1 Results, Strong FY26 Outlook Boosts Investor Sentiment

Ola Electric Shares Surge 17% After Q1 Results, Strong FY26 Outlook Boosts Investor Sentiment

NSE Becomes World's 4th-Largest IPO Fundraising Exchange With $5.51 Billion In H1 2025

NSE Becomes World's 4th-Largest IPO Fundraising Exchange With $5.51 Billion In H1 2025

WPI Inflation Slips Into Negative Zone In June, Food & Fuel Prices Lead Deflation

WPI Inflation Slips Into Negative Zone In June, Food & Fuel Prices Lead Deflation

Will PM-Kisan 20th Installment Release On July 18?, Know What Farmers Should Expect

Will PM-Kisan 20th Installment Release On July 18?, Know What Farmers Should Expect