RBI:Stabilisation bond sale on schedule

MUMBAI, AUGUST 17 (AGENCIES)

Reserve Bank of India (RBI) Deputy Governor Rakesh Mohan said on Tuesday the announcement notifying the sale of bonds to drain surplus liquidity from the market would take place as scheduled.

"The MSS (market stabilisation scheme) sales will come in the normal way," Mohan told reporters on the sidelines of a debt market seminar.

"We have put out a schedule for the MSS and the schedule will continue as announced before. When the figure hits Rs 50000 crore, we will have discussions with the government."

The Indian government plans to issue bonds and treasury bills worth Rs 36500 crore ($7.9 billion) under the MSS in the second quarter of the fiscal year to March 2005.