3rd tranche of RBI of the purchase on the open market of Rs 40,000 cr G-Secs under G-SAP 1.0 on June 17
In April, RBI Governor Shaktikanta Das said the RBI would purchase Rs 1 lakh crore government securities on the open market under G-SAP 1.0 in the first quarter of fiscal year 2021-2022. . The first such auction of Rs 25,000 crore took place on April 15th and the second took place on May 20th for Rs 35,000 crore.
“… the Reserve Bank will proceed with the third tranche of purchase on the open market of government securities of Rs 40,000 crore as part of the G-sec acquisition program (G-SAP 1.0) on June 17, 2021” the central bank said in a statement. Thursday.
Of this amount, State Development Loans (SDLs) would be purchased up to Rs 10,000 crore.
According to the RBI, auctions under G-SAP 1.0 have garnered strong interest from market participants, with bid coverage ratios of 4.1 and 3.5, respectively, in the two corporate auctions. until now.
Earlier this month, Das said the positive externalities associated with G-SAP 1.0 operations are reflected in other segments of the financial market, including corporate bonds and debentures.
The RBI has also decided to undertake G-SAP 2.0 in Q2: 2021-22 and conduct secondary market buy operations of Rs 1.20 lakh crore to support the market. PTI NKD MKJ
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI