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NSE to auction investment limits for Rs 497-cr govt bonds

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Press Trust of India New Delhi
Last Updated : Dec 11 2015 | 12:42 PM IST
Leading bourse National Stock Exchange (NSE) will auction investment limits for foreign investors to buy government debt securities worth Rs 497 crore on Monday.
The auction will be conducted on NSE's ebid-platform from 1530 hours to 1730 hours after the close of market hours on December 14, the exchange said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.
A mock bidding session would be conducted today to check the system's performance.
Depository data showed that total investments, including limits acquired by foreign investors through the auction route, stood at Rs 1,29,403 crore till December 10, which is 99.62 per cent of the total permitted investment limit of Rs 1,29,900 crore in government debt securities.
Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits.

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During earlier auctions, government bonds were subscribed multiple times, given the huge interest among foreign investors.
Last month, an auction for government bonds worth Rs 332 crore had attracted bids to the tune of Rs 521 crore.
The Securities and Exchange Board of India (Sebi) has decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12 to January 1.
The limit for overseas investors in securities was hiked to Rs 1,29,900 crore on October 12 and would be further shored up to Rs 1,35,400 crore from January 1.
Earlier, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.

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First Published: Dec 11 2015 | 12:42 PM IST

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