Special OMO: RBI to simultaneously buy, sell g-sec worth Rs 10,000 cr each on 27 April

Mumbai: The Reserve Bank of India (RBI) will simultaneously purchase and sell government securities worth Rs 10,000 crore each through a special open market operation (OMO) on 27 April.In a statement, the central bank said special OMO of simultaneous purchase and sale of government securities (g-sec) will done using the multiple price auction method. "On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under OMO for Rs 10,000 crores each on 27 April, 2020," it said.The RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities and accept or reject any or all the bids and offers either wholly or partially without assigning any reasons.Eligible participants can submit their bids or offers in electronic format on the RBI Core Banking Solution (E-Kuber) system on Monday.The result of the auctions will be announced on the same day and successful participants.In another release, the RBI has specified the minimum underwriting commitment and minimum bidding commitment for the underwriting auction for sale of g-sec for Rs 21,000 crore scheduled for Friday.The underwriting auction will be conducted through multiple price-based method.