RBI’s first purchase under G-SAP 1.0 set for 15 April

A day after announcing the start of the G-Second Acquisition Program (G-SAP 1.0), the Reserve Bank of India (RBI) on Thursday announced the Government of India’s free market purchases under the program.

“The Reserve Bank will conduct open market purchases of government securities worth 1 1 lakh crore under the G-sec Acquisition Program (G-SAP 1.0) in Q1 2021-22 with a view to enabling stable and orderly growth of the yield curve. The RBI said in a circular, the first purchase of government securities for a total amount of ₹ 25,000 crore under G-SAP 1.0 will be conducted on April 15, 2021. The central bank, accordingly, the Reserve Bank will purchase five types of government securities through multi-security auctions using a variety of price methods. The maturity dates vary from November 2, 2023 to March 16, 2035. RBI reserves the right to decide the amount of purchase of individual securities and to accept bids for less than the total amount.