RBI conducts Rs55,220 crore `special repo'; announces Rs12,000 crore bond sale

30 Mar 2009

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The Reserve Bank of India will conduct a special fixed rate term repo at 5.0 per cent per annum against eligible securities for Rs55,220 crore today, due for reversal on 13 April 2009, in order to help banks to meet the liquidity requirements of mutual funds, non-banking financial companies (NBFCs) and housing finance companies (HFCs) either on incremental or on rollover basis.

Of the outstanding amount of Rs4,880 crore as of 26 March 2009, Rs100 crore is due for redemption today.

The special fixed rate term repo under liquidity adjustment facility is available till 30 September 2009 up to a cumulative amount of Rs60,000 crore on outstanding basis to banks exclusively for the purpose of meeting requirements of MFs, NBFCs and HFCs.

RBI also will alo sell two dated securities of the Government of India for Rs12,000 crore on 2 April: The sale (re-issue) of  `7.56 per cent 2014 stock' for a notified amount of Rs8,000 crore (nominal) and the `7.94 per cent 2021 stock' for a notified amount of Rs4,000 crore.

Both the government stocks will be sold through price based auctions using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on 2 April.

Up to five per cent of the notified amount of the sale of both the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

The result of the auctions will be announced on the same day and payment by successful bidders will be received during banking hours on 6 April 2009.

The stocks will qualify for the ready forward facility, RBI, which underwrites the issues, said in a release.

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