Following RBI Governor Shaktikanta Das’ announcements on Wednesday, the apex bank notified on Thursday that it would conduct open market purchase of government securities of Rs 1 lakh crore under the G-sec Acquisition Programme (G-SAP). The first purchase of the government securities for an aggregate amount of Rs 25,000 crore under G-SAP 1.0 will be conducted on April 15. RBI said that this open market purchase will be conducted with a view to enable a stable and orderly evolution of the yield curve.
The apex bank will purchase the government securities through a multi-security auction using multiple price method. The RBI has notified five securities with different maturities.
The RBI said that it reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher or lower that the aggregate amount due to rounding-off, and accept or reject any or all the bids either wholly or partially without assigning any reasons.
News Source: businesstoday