RBI to conduct simultaneous sale, purchase of govt securities next week

RBI to conduct simultaneous sale, purchase of govt securities next week

MUMBAI: The Reserve Bank of India (RBI) on Thursday announced it will conduct simultaneous purchase and sale of government securities worth Rs 10,000 crore each on May 6 under open market operations (OMOs).

The decision was taken after a review of current liquidity and financial conditions, the RBI said in a statement.

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

On May 6, the RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and sell two securities aggregating to the same amount using the multiple price auction method.

The RBI further said it reserves the right to decide on the quantum of purchase/sale of the securities.

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

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