As announced in the Statement on Developmental and Regulatory Policies dated October 09, 2020, the Reserve Bank conducted the first auction under Open Market Operations (OMOs) in State Developments Loans (SDLs) on October 22, 2020. 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. Therefore, it has been decided to conduct another purchase auction of SDLs under Open Market Operations (OMOs) for an aggregate amount of ₹10,000 crores on November 05, 2020.

2. The Reserve Bank will purchase the SDLs, as given in the Annex, through a multi-security auction, using the multiple price method. There is no security-wise notified amount. The Reserve Bank reserves the right to:

• decide on the quantum of purchase of individual securities.

• accept bids for less than the aggregate amount.

• purchase marginally higher/lower than the aggregate amount due to rounding-off.

• accept or reject any or all the bids either wholly or partially without assigning any reasons.

3. Eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on November 05, 2020. Only in the event of system failure, physical bids/offers would be accepted. Such physical bid/offer should be submitted to the Financial Markets Operations Department (email; Phone no: 022-22630982) in the prescribed form obtainable from the Reserve Bank’s website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before 11.00 am.

4. The result of the auction will be announced on the same day and successful participants should ensure availability of requisite amount of securities in their SGL account by 12 noon on November 06, 2020.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2020-2021/563

Annex