The Reserve Bank of India (RBI) has announced Open Market Operations (OMO) purchase auction of State Government Securities for an aggregate amount of ₹10,000 crore on November 5.
The Reserve Bank will purchase the State Developments Loans (SDLs) through a multi-security auction, using the multiple price method.
As announced in the Statement on Developmental and Regulatory Policies dated October 9, 2020, the Reserve Bank conducted the first auction under OMOs in SDLs on October 22.
“The response was positive, with securities offered for each state being subscribed to, and at yield spreads over central government securities of equivalent maturity at levels which would foster supportive financing conditions for new primary issuances of SDLs,” the RBI said.
