RBI Announces OMO Purchase of Government Securities for `12,000 crore on December 22, 2010

Further to RBI Press Release dated December 16, 2010, wherein it was stated that the Reserve Bank of India would conduct OMO purchase auctions of `12,000 crore every week for four weeks starting with the week ending December 24, 2010, Reserve Bank has decided to purchase the following government securities through auction for an aggregate amount up to `12,000 crore through multi-security auction using the multiple price method:

The auction shall be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on December 22, 2010 (Wednesday).

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 (www.rbi.org.in/) ) should be submitted to that Office on December 22, 2010 (Wednesday). 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 December 23, 2010 (Thursday). Successful offerers may note to make available the requisite amount of securities in their SGL account in the forenoon on December 23, 2010.

Ajit Prasad
Assistant General Manager

Press Release : 2010-2011/859