The central bank also said that no request for cancellation of bids will be entertained after the close of the auction window.
“There have been a few instances of fat-finger / big-figure error by the bidders in the g-sec auctions… it suggests that some of the market participants are yet to put in place the “price / yield range setting” facility in their system,” RBI said Wednesday.
It has been advising the participants to use the “price / yield range setting” facility as a risk management measure. The facility allows a market participant to define a range ie, a maximum and a minimum value for 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, which can be set before the auction and can also be modified during the auction. Once the limits are set by the participating entity, the bids in the auctions are automatically validated against the set limits.
“This is expected to eliminate instances of fat-finger / big-figure error by the bidders in the g-sec auctions,” RBI said.
