The Reserve Bank will conduct open market purchase of government securities of Rs 25,000 crore on August 26, under the G-sec Acquisition Programme (G-SAP 2.0).
The open market purchase was announced by the RBI after the Monetary Policy Review meeting early this month. It had said that it will conduct auctions of Rs 25,000 crore each on August 13 and August 26.
The apex bank said that it will reserve the right to decide on the quantum of purchase of individual securities and accept bids of less than the aggregate amount. It will also purchase marginally higher/lower than the aggregate amount due to rounding-off or accept or reject any or all the bids either wholly or partially without assigning any reasons.
The result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their SGL account by noon on August 27, an RBI statement said.
The auctions help to maintain the yield curve of bonds and ensure liquidity in the system.
The RBI's recent G-SAP auctions have focused on securities across the maturity spectrum with the intention to ensure that all segments of the yield curve remain liquid.
The apex bank said that it will reserve the right to decide on the quantum of purchase of individual securities and accept bids of less than the aggregate amount. It will also purchase marginally higher/lower than the aggregate amount due to rounding-off or accept or reject any or all the bids either wholly or partially without assigning any reasons.
The result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their SGL account by noon on August 27, an RBI statement said.
The auctions help to maintain the yield curve of bonds and ensure liquidity in the system.
The RBI's recent G-SAP auctions have focused on securities across the maturity spectrum with the intention to ensure that all segments of the yield curve remain liquid.
(IANS)