Mumbai, Nov 12: The Reserve Bank of India on Thursday said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on November 19.
Mumbai, Nov 12: The Reserve Bank of India on Thursday said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on November 19.
The decision was taken after a review of the current liquidity and financial conditions, the RBI said in a statement.
Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing government securities of longer maturities and selling equal amount of such securities of shorter maturities.
On November 19, the RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and will also sell two securities maturing at different dates aggregating to the same amount. This will be done using the multiple price auction method.
The RBI said it reserves the right to decide on the quantum of purchase/ sale of individual securities.
The result of the auctions will be announced on the same day.