Saturday, April 22, 2017

Dated Government Securities In India

Leave a Comment
Dated Government Securities In India

The Government of India has also decided to sell dated securities (of 5 year maturity and 10 maturity) on an auction basis. The purpose of this Government decision is:

finance
[Post Image Courtesy of Renjith Krishnan at FreeDigitalPhotos.net]

(i) to develop dated securities as a monetary instrument with flexible yields;

(ii) to provide financial instruments to suit investors’ expectations; and

(iii) to meet Government needs directly from the market.

A very interesting development is the introduction of repurchase auctions (Repos, for short), since December 1992, in respect of Central Government dated securities. Repos are now a regular feature of RBI’s market operations. One purpose of Repos is to even out short-term fluctuations in liquidity of the money market.

When Government securities are repurchased from the market, RBI makes payment to commercial banks and this adds to their liquidity. Repos are developing into a useful instrument to even out sharp fluctuations in the money market.

If You Enjoyed This, Take 5 Seconds To Share It

0 comments:

Post a Comment

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Google+ Badge

Copyright (c) 2015-2017, The BusinessParrot. All Rights Reserved. Powered by Blogger.

Recent Comments

Recent Posts

Followers

Blog Archive

Follow by Email

[about]

[Latest News][6]

Affiliate Marketing Guides
Agriculture Business Ideas
Amazon Online Store Tips
Banking & Finance Tips
Blogging & Webmaster Guides
Bulk SMS Short Code Guides
Computer & IT Business Ideas
Education Business Ideas
Entrepreneurship Tips & Freebies
Facebook Autopilot & Tips
Fashion & Decoration Ideas
Financial Calculators
Fiverr Income Guides
Free SMS Text Messages
Google Adsense Tips
Health Business Opportunities
Inspirational Poems & Literature
Insurance & Risk Management
Job Search Tips
Mobile Phone Tips & Business
Motivational Quotes & Tips
Oil & Gas Business Ideas
Online Business Guides
Online Importation Business Guides
Small Scale Business Ideas
Social Media Income Guides
Start-Up Business Ideas
Transportation & Haulage Ideas
Web & Graphic Designing Ideas
Work-At-Home Business Ideas