Stocks

RBI OMO Purchase: RBI to conduct simultaneous sale-purchase of govt securities next week

MUMBAI: The Reserve Financial institution of India on Monday introduced it is going to conduct simultaneous buy and sale of presidency securities below Open Market Operations (OMO) for Rs 10,000 crore every on February 25, 2021.

The choice was taken after a evaluation of present liquidity and monetary circumstances, the RBI stated in an announcement.

Simultaneous buy and sale of presidency securities below OMOs, popularly generally known as Operation Twist, includes buying G-Sec of longer maturities and promoting equal quantity of G-Sec of shorter maturities.

On February 25, the RBI will buy three authorities securities of various maturity dates aggregating to Rs 10,000 crore and promote two securities aggregating to the identical quantity utilizing the a number of value public sale technique.

The RBI additional stated it reserves the correct to resolve on the quantum of buy/sale of the securities.

The results of the auctions will likely be introduced on the identical day.

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