Banking regulator asks exchanges to act as facilitators and bid aggregators
"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMO)," the central bank said.
RBI initiated a few other measures to improve policy interest rate transmission, on banking regulation and supervision and measures to improve financial and securities markets.
Both competitive and non-competitive bids for the auction have to be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
The revised limit comes in to force as per RBI's review of the medium term framework with relation to investment of FPIs in government securities.
When the central government goes around with a hat in hand, it is usually questionable whether it can negotiate, much less, secure cheaper loans.
Wholesale debt market segment of the National Stock Exchange today witnessed a total turnover of Rs 1,774.00 crore in 36 trades.
Conventional wisdom suggests that there should be a strong negative correlation between the change in Bank Nifty and the yield on the ten-year G Sec. To put it simply, if bond prices rise (and hence bond yields fall), banks should be gaining in their G Sec portfolios.
Providing greater flexibility to NPS subscribers both in the individual and corporate segments, PFRDA has allowed them to alter their investment scheme choice and asset allocation twice in a financial year instead of once at present.
The Reserve Bank has raised the cash deposit or reserve ratio limit for banks to contain liquidity surge post demonetisation. However, it has also assured it will revisit the limits once the government issues an adequate quantum of Market Stabilisation Scheme bonds. Here are 5 things you should know about MSS bonds and how they will help.
With yields on government securities declining significantly, it is estimated that gains from investments will surpass the budgeted capital infusion of Rs 25,000 crore for PSBs in the current fiscal, rating agency ICRA said in a report.
The move to withdraw high-denomination notes is expected to dent immediate consumption in the medium-term, but will have a positive impact on growth and inflation in the long run, says Kumaresh Ramakrishnan, Head-Fixed Income at DHFL Pramerica Mutual Fund.
Speaking to CNBC-TV18, SK Dubey, MD of PNB Gilts said that company's current book is at Rs 4500 crore and it has sufficient margin to increase book if opportunities come.
Wholesale debt market segment of the National Stock Exchange (NSE) on Friday witnessed a total turnover of Rs 1,804 crore in 55 trades.
"As announced in the medium term framework, the limits for investment by FPIs in Central Government securities for the next half year are proposed to be increased in two tranches, each of Rs 100 billion from October 3, 2016 and January 2, 2017 respectively," it said in a notification.
Government debt securities today attracted bids worth a staggering Rs 7,494 crore (USD 1.12 billion) from foreign investors as against Rs 7,046 crore on offer in an online auction.
Reserve Bank of India on June 16 said it will buy government securities worth Rs 10,000 crore under the open market operations (OMOs) on June 20 to infuse liquidity into the system
"Based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of 100 billion on January 20, 2016," RBI said in a release.
The net inflow in equities stood at Rs 6,650 crore last month, while it was Rs 15,700 crore for debt, translating into a total of Rs 22,350 crore (USD 3.44 billion), as per data compiled by the depositories.
The indices -- Nifty 15 year and above G-Sec index, Nifty Composite G-sec index, Nifty 4-8 year G-Sec index and Nifty 11-15 year G-Sec index-- are aimed at providing benchmarks across government securities tenors.
Following this, an additional Rs 16,431 crore was available for investment in various government bonds from yesterday onwards. Out of this, investment limits worth about Rs 5,600 crore was being allotted through an e-auction, while the rest would be available on tap.
Out of this, investment limits worth about Rs 5,600 crore are being allotted through an e-auction, while the rest would be available on tap. In further opening up, the limits would be enhanced by another Rs 16,600 crore from January 1 ownwards.
The announcement follows a decision by RBI to fix FPI investment limits in rupee terms and raise it in phases to reach 5 percent of the outstanding stock by March 2018.
A 50 basis points repo rate cut and slew of policy measures announced by the Reserve Bank in the recent monetary policy review could attract an average annual flow of Rs 48,000 crore in government bonds from overseas investors for the next few years, says a report.
The company further said that it targeted raising Rs 300 crore through the bonds but the bids were received for Rs 2,175 crore for placing the bonds on private placement route.