RBI OMO for sale: First auction of Rs 10,000 crore scheduled for September 10

New Delhi: The Reserve Bank of India (RBI) on Monday announced that it 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 RBI on August 31 had announced special simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of Rs 20,000 crores in two tranches of Rs 10,000 crores each.

The Reserve Bank reserves the right to decide on the quantum of purchase/sale of individual securities; accept bids/offers for less than the aggregate amount; purchase/sell marginally higher/lower than the aggregate amount due to rounding-off; and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons, the central bank said.

Eligible participants are required to submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Only in the event of system failure, physical bids/offers would be accepted. Such physical bid/offer should be submitted to Financial Markets Operations Department (email; Phone no: 022-22630982) in the prescribed form obtainable from RBI website.

The result of the auctions will be announced on the same day and successful participants should ensure availability of funds/securities in their Current account/SGL account on September 11, 2020, RBI said.