On Wednesday, the Reserve Bank of India (RBI) instructed all market participants to avoid errors when bidding on g-sec auctions.

The Reserve Bank of India has asked all market participants to provide “price/yield range setting” functionality on the e-Kuber platform. Back in 2019, the central bank issued similar instructions to market participants.

“As there were some fat finger/large number errors by bidders in the g-sec auction conducted by RBI, this suggests that some market players have yet to identify price/yield ranges to set facilities in their systems,” RBI said.

This facility allows traders to set a range for the bids they intend to submit in an auction. Ranges can be placed in price or yield terms for each security in each auction. Ranges must be set before the auction but can also be modified during the auction. Bids are validated against set limits set by market participants.