BSE to auction investment limits for Rs 5,035-cr govt bonds

Leading bourse BSE will auction investment limits for overseas investors on Monday for the purchase of government debt securities worth Rs 5,035 crore.

The auction will be conducted on BSE's ebidxchange platform from 3.30 pm to 5.30 pm - after the close of market hours, BSE said in a circular.

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

Depository data showed that total investments including limits acquired by foreign investors through auction route stood at Rs 1,30,719 crore till March 3, which was 96.54% of the total permitted investment limit of Rs 1,35,400 crore in the government debt securities.
 

"Live bidding session for allocation of debt investment limits for FII and sub-accounts shall be conducted on Monday, March 28, 2016, on exchange's 'ebidxchange' platform," the exchange said.

In earlier auctions, government bonds have been subscribed multiple times, given the huge interest among the foreign investors.

Earlier this month, an auction of government debt securities had attracted bids worth Rs 6,463 crore from foreign investors as against Rs 4,681 crore put on offer.

The limit for overseas investors in securities was hiked to Rs 1,29,900 crore from October 12, and it was further increased to Rs 1,35,400 crore from January 1, 2016.

Prior to the October limit, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.