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NSE to auction investment limit for govt, corp bonds worth Rs 8,800 cr

Debt auction quota gives overseas investors the right to invest in the debt up to the limit purchase

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Press Trust of India New Delhi
Last Updated : Aug 11 2017 | 2:43 PM IST
The National Stock Exchange (NSE) on Friday said it will auction investment limits for overseas investors for the purchase of government and corporate debt securities totalling over Rs 8,800 crore on Monday.

The auction would be conducted for investment limits worth Rs 5,481 crore of government debt securities, while the same would be Rs 3,360 crore for corporate bonds, NSE said in a circular.

The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchase.

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The auction will be conducted on NSE's e-bid platform from 1530 hours to 1730 hours after the close of market hours.

Till yesterday, total investment in government debt reached Rs 1,82,219 crore -- which was 97.08 per cent of total permitted limit of Rs 1,87,700 crore-- while the same in corporate bond stood at Rs 2,40,963 crore (98.62 per cent of total permitted limit of Rs 2,44,323 crore).

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits on August 14, 2017.

Besides, a mock bidding session will be conducted today to check the system's performance.

In an auction conducted last month, corporate bonds received an overwhelming response from foreign portfolio investors (FPIs) and attracted bids worth Rs 10,442 crore as compared to Rs 7,418 crore on offer.

Further, government debt securities also witnessed robust response from FPIs and attracted bids to the tune of Rs 14,698 crore as against Rs 10,922 crore on offer.

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First Published: Aug 11 2017 | 2:43 PM IST

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