Reserve Bank of India (RBI) has advised participants in government securities (G-Sec) to utilise the ‘price/yield range setting’ on the e-Kuber platform before placing bids in primary market auctions.

The advisory comes after instances of ‘fat finger/ big-figure’ error by bidders during RBI’s G-Sec auctions.

RBI noted that some market participants were yet to instal the ‘price/yield range setting’ in their system. The facility was enabled on the e-Kuber platform in December 2019 as a risk management measure.

“The facility allows a market participant to define a range — 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,” RBI said in a 2019 circular.

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Once the limits are set by the participating entity, the bids in the auction 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 in the circular.

The central bank on Wednesday also said no request for cancellation of bids will be entertained after the close of auction window.