The Hindu Business Line : Rs 7,770 cr issuance under MSS

THE Government has scheduled a net issuance of Rs 7,770 crore through treasury bills under the Market Stabilisation Scheme, for the first half of the fiscal 2005-06, as against an issuance of Rs 35,500 crore in the first half of 2004-05.

An RBI press release said, the issuance of Treasury Bills under the MSS will be undertaken by increasing the notified amounts for the regular auctions of 91-day, 182-day and 364-day Treasury Bills.

Thus, the issuances under MSS covered by the above quarterly indicative schedule will be undertaken in addition to the regular issuances of Treasury Bills and dated securities.

The issuance of 91-day in this quarter will essentially be the roll over of 91-day Treasury Bills issued in the January-March 2005 quarter. The rollover of 364-day Treasury Bills issued would also start from April 15, 2005.

However, on account of shortfall in the absorption in 364-day Treasury Bills auction conducted under MSS on June 23, 2004, the net proposed issuance of 364-day Treasury Bills will be around Rs 770 crore (face value).

Further, the absorption through newly introduced in the 182-day Treasury Bills is proposed to be Rs 7,000 crore (face value), the release said.

The indicative schedule is subject to variations depending on market conditions and other relevant factors. In addition to the proposed issuances indicated in the schedule, the RBI will also have the flexibility for additional issuances of Treasury Bills and dated securities depending upon the prevailing liquidity conditions and other relevant factors.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICAI issues guidance note on bank audits

Rupee weakens; bonds in range

Credit Policy statement on April 28 — New risk management products likely

Laser Soft tool for United Bank

General insurers pitching to provide risk cover to port trusts

Karnataka Bank to increase number of branches to 400

South Indian Bank branches

South Indian Bank opens new branch in Coimbatore

ECGC signs pact with Commerce Ministry

Centre to borrow Rs 83,000 cr in H1

No presiding officer at DRT Coimbatore

Rs 7,770 cr issuance under MSS

New IRDA norms for marine, war risk covers

Allahabad Bank-PNB Kazakh venture set for take-off