No relation between RBI’s OMO and disinvestment

The Department of Disinvestment has said that the impression created by the news item “Did RBI’s OMO help govt’s NMDC selloff?” is not correct. Reserve Bank of India (RBI) is an independent banking regulator who regularly conducts OMOs (Open Market Operations) as a normal tool of monetary policy as per its analytical mechanisms and policy decisions.

RBI’s OMO on December 5, 2012 too was a part of this exercise and had nothing to do with disinvestment of 10% paid-up equity capital of NMDC Limited. “There is no co-relation between RBI’s monetary policy decisions and govt’s disinvestment programme and any talk of a co-relation between the two is baseless, illogical and misleading,” the finance ministry statement said.

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