Latest News | RBI to Conduct Simultaneous Sale-purchase of Govt Securities Next Week
Get latest articles and stories on Latest News at LatestLY. The RBI on Thursday announced it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 7, 2021
Mumbai, Dec 31 (PTI) The RBI on Thursday announced it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 7, 2021
The decision was taken after a review of current liquidity and financial conditions, the Reserve Bank said in a statement.
Simultaneous purchase and sale of G-sec under OMOs, popularly known as Operation Twist, involves purchasing the securities of longer maturities and selling an equal value of securities of shorter maturities.
On January 7, the RBI will purchase three government securities (G-Sec) 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.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)