RBI announces OMO of simultaneous purchase and sale of govt securities

The Reserve Bank of India (RBI) on Monday announced special open market operations (OMO) of government securities worth Rs 10,000 crore.

"On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on July 2," the central bank said in a release.

The apex bank said it will buy government securities including 6.79 per cent, 7.26 per cent, 6.68 per cent and 6.57 per cent maturing on May 15, 2027, January 14, 2029, September 17, 2031 and December 5, 2033.

On the other hand, it will sell securities that mature between October 2020 and April 2021.

The central bank added that it reserves the right to decide on the quantum of purchase or sale of individual securities, accept bids or offers for less than the aggregate amount, purchase or sell marginally higher or lower than the aggregate amount due to roundingoff and to accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.