Date:20/09/2005 URL: http://www.thehindubusinessline.com/2005/09/20/stories/2005092002020600.htm

Back Ministry releases quarterly schedule for MSS bonds

Our Bureau

New Delhi , Sept. 19

THE Finance Ministry on Monday released a quarterly indicative schedule for issuance of treasury bills/dated securities under Market Stabilisation Scheme (MSS) covering the period from October 1 to December 31, 2005.

The indicative schedule has been drawn up in consultation with the Reserve Bank of India.

An official release said that the issuance of treasury bills under the MSS would 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 latest quarterly indicative schedule would be in addition to the regular issuances of treasury bills and dated securities.

The Finance Ministry also said that the latest indicative schedule was subject to variations depending on market conditions and other relevant factors. In addition to the proposed issuances indicated in the schedule, there would also be flexibility for additional issuances of treasury bills and dated securities based on the prevailing liquidity conditions and other relevant factors.

It may be recalled that on March 25, 2004 a memorandum of understanding was signed between the Government of India and the Reserve Bank of India for launching of MSS. The scheme was launched through a system of releasing quarterly indicative schedule for issuances of treasury bills/dated securities under MSS.