RBI Announces OMO Purchase of Government Securities for Rs.12,000 crore on January 13, 2012

The Reserve Bank in its Mid Quarter Monetary Policy Review released on December 16, 2011 had stated that OMOs would be conducted as and when considered appropriate.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the following government securities for an aggregate amount of ` 12,000 crore on January 13, 2012 through multi-security auction using the multiple price method:

Sr. No	Security	Date of Maturity
1	7.83% GS 2018	April 11, 2018
2	7.80% GS 2020	May 3, 2020
3	8.13% GS 2022	September 21, 2022
4	8.28% GS 2032	February 15, 2032

The auction shall be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 13, 2012 (Friday).

Market participants may take note of the following:

There is an overall aggregate ceiling of `12,000 crore for all the securities in the basket put together. There is no security-wise notified amount.

RBI reserves the right to:

• Decide on the quantum of purchase of individual securities.
• Accept less than the aggregate amount of `12,000 crore.
• Purchase marginally higher than the aggregate amount due to rounding effects.
• Accept or reject any or all of the offers either wholly or partially if deemed fit without assigning reason.

Offers in the prescribed form obtainable from the Regional Director, Reserve Bank of India, Mumbai Office, Fort, Mumbai-400001 and/or RBI website (www.rbi.org.in) should be submitted to that Office on January 13, 2012 (Friday). The NDS members should submit their competitive offers in electronic format using Open Market Operation (OMO) module of NDS. All offers should be submitted by 12.30 P.M.

The result of the auction will be announced on the same day and payment to successful offerers will be made during banking hours on January 16, 2012 (Monday). Successful offerers may note to make available the requisite amount of securities in their SGL account in the forenoon on January 16, 2012.

Ajit PrasadAssistant General Manager

Press Release : 2011-2012/1106

Source: RBI