Comments
The Reserve Bank of India (RBI) will be conducting two more Government Security (G-Sec) auctions in March 2021 even as the size of the auctions it will be conducting from now till the week ending March 12, 2021 has been increased by up to ₹7,000 crore.
With Finance Minister Nirmala Sitharaman announcing on Monday that the Government would need another ₹80,000 crore, the Government of India (GoI), in consultation with the RBI, decided to modify the indicative calendar for issuance of Government dated securities for the remaining part of the second half of the fiscal 2020-21 (February 1 – March 31, 2021).
Also read: Will Finance Minister’s gamble with market borrowing work?
According to the revised issuance calendar for marketable dated securities for the remaining period of H2 (February – March 2021), the government will be borrowing between ₹4,000 crore and ₹7,000 crore more every week than what it planned to borrow as per the calendar issued on October 15, 2020.
RBI will be conducting two more G-Sec auctions in March 2021 -- for Rs 29,000 crore in the March 15-19 period and for Rs 20,000 crore in the March 22-26 period.
Also read: Now, SEBI may get to regulate G-Secs
The Government of India, in consultation with the RBI, reserves the right to exercise the green-shoe option to retain additional subscription up to ₹2,000 crore each against one or more security/ies indicated in the auction notification, RBI said in a statement.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.