Reserve Bank of India has determined to public sale bonds on the premise of uniform worth technique
The Reserve Bank of India (RBI) has altered its methodology for public sale of bonds, below which bonds maturing between two to 14 years, will now be auctioned below the uniform worth technique.
Subsequently, the benchmark securities of tenures measuring two-years, three-years, five-years and 10-years and 14 years in addition to floating price bonds, will now be issued on the premise of uniform worth technique, the RBI mentioned in an announcement.
The change in methodology was notified by the central financial institution on July 2, which implies that instead of the present a number of worth technique, it would use the uniform pricing technique.
The RBI mentioned 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 new bond public sale methodology will proceed until additional discover, the assertion added.
