MUMBAI, September 11: The Reserve Bank of India (RBI) will conduct open market operation sales of Government of India securities worth an aggregate ₹1 lakh crore through three auctions beginning September 17.
The central bank said the decision follows a review of prevailing and evolving liquidity conditions.
The first auction, scheduled for September 17, will have a notified amount of ₹50,000 crore. Two more auctions of ₹25,000 crore each will be held on September 21 and September 28.
The auctions will be conducted through a multi-security auction using the multiple price method.
For the September 17 auction, the RBI will offer six government securities: 7.59 per cent GS 2029, 6.79 per cent GS 2029, 7.61 per cent GS 2030, 5.77 per cent GS 2030, 6.68 per cent GS 2031 and 8.28 per cent GS 2032.
There will be no security-wise notified amount within the overall ₹50,000 crore offered in the first auction.
The RBI said it reserves the right to decide the quantum of individual securities to be sold, accept bids for less than the aggregate notified amount and sell marginally higher or lower quantities because of rounding-off.
The central bank may also accept or reject any or all bids, either wholly or partially, without assigning any reason.
Eligible participants can submit bids electronically through the RBI’s Core Banking Solution, E-Kuber, between 9:30 am and 10:30 am on September 17.
Physical bids will be accepted only in the event of a system failure and must reach the RBI’s Financial Markets Operations Department before 10:30 am.
The auction results will be announced on September 17. Successful participants will be required to ensure availability of funds in their current accounts by 12 noon on September 18.
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