The Reserve Bank of India (RBI) on Wednesday issued directions to all market participants to avoid errors while placing bids for g-sec auctions.
The RBI has asked all the market participants to place “price/yield range setting” facility provided on the e-Kuber platform. The central bank had issued similar instructions to market participants back in 2019.
The facility allows traders to set a range for the bids they intend to submit in an auction. The range can be set in either price or yield terms, for each security in every auction. The range has to be set before the auction, but can also be modified during the auction. The bids are validated against the set limits as set by the market participants.