RBI Changes Bonds Auction Methodology

The Reserve Financial institution of India (RBI) has altered its methodology for public sale of bonds, beneath which bonds maturing between two to 14 years, will now be auctioned beneath the uniform worth methodology.

Subsequently, the benchmark securities of tenures measuring two-years, three-years, five-years and 10-years and 14 years in addition to floating charge bonds, will now be issued on the premise of uniform worth methodology, the RBI stated in an announcement.

The change in methodology was notified by the central financial institution on July 2, which implies that instead of the prevailing a number of worth methodology, it’ll use the uniform pricing methodology.

The RBI stated that the choice to alter the methodology for bonds public sale has been taken after monitoring the market situations and the market borrowing schedule of the Centre.

The brand new bond public sale methodology will proceed until additional discover, the assertion added.