1. News
  2. Explained

What is Operation Twist Explained

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 2, 2020 2:30 PM 2 min read

RBI announces Operation Twist. 



RBI announces third round of 'Operation Twist' on 6 January.

Twist and Roll: The Reserve Bank of India has announced the third round of 'Operation Twist' on January, 6th, wherein it will undertake simultaneous purchase and sale of government securities under the special open market operation (OMO).


The concept is similar to Operation Twist used by the Federal Reserve in 2011-2012 where it had swapped short-term treasury securities for longer-term government debt, which reduced the gap between two- and 10-year yields. The move is expected to stimulate private sector borrowing, as well as dampen term premia (the difference between the 10-year government bond yield and the repo rate) to aid the centre’s borrowing programme by making it cheaper. Livemint

Trai's tariff amendments might force broadcasters to revise pricing for channels.

More the Merrier: The Telecom Authority of India is set to amend its tariff order of February 2019, a move which could prompt broadcasters to revise pricing for channels, forcing them to make more channels free-to-air. 


As per experts, broadcasters like Sony Pictures Networks India and Star India could be impacted more as their bouquet offerings were at discounts of 35-54%. In fact, Star India, which was expected to come out with its new channel pack on Thursday, has now deferred the same, reported sources. 


According to Trai’s amendments, which will come to force from March 1, a broadcaster cannot price channels in a bouquet such that the maximum retail price (MRP) of all a-la-carte channels in the bouquet is more than 1.5x the price of the bouquet. The telecom regulator also laid down a second condition that the MRP of any a-la-carte channel cannot be more than 3x the average price of any channel in that particular bouquet. A deep dive into the matter here


Hand-curated Business News from Top Publishers & Platforms, Richly Crafted to Fit into One Wholesome Email. Subscribe Now to receive a nuanced 360 Degree account of key events from the World of Business and Finance every day.