INSUBCONTINENT EXCLUSIVE:
Reserve Bank of India has decided to auction bonds on the basis of uniform price methodThe Reserve Bank of India (RBI) has altered its
methodology for auction of bonds, under which bonds maturing between two to 14 years, will now be auctioned under the uniform price
method.Subsequently, the benchmark securities of tenures measuring two-years, three-years, five-years and 10-years and 14 years as well as
floating rate bonds, will now be issued on the basis of uniform price method, the RBI said in a statement.The change in methodology was
notified by the central bank on July 2, which means that in place of the existing multiple price method, it will use the uniform pricing
method.The RBI said that the decision to change the methodology for bonds auction has been taken after monitoring the market conditions and
the market borrowing schedule of the Centre.The new bond auction methodology will continue till further notice, the statement added.
