NSE to auction investment limits for Rs22,171 crore govt bonds
New Delhi: Leading bourse National Stock Exchange (NSE) will on Monday auction investment limits for overseas investors for purchase of government debt securities worth Rs22,171 crore.
The auction will be conducted on NSE’s ‘e-bid’ platform from 1530 hours to 1730 hours, after the close of market hours.
The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased. As per latest data available with depositories, the total investment in government debt has reached Rs1,25,829 crore till 24 November, which was 85.02% of total permitted limit of Rs1.48 trillion.
Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs22,171 crore Monday.
A mock bidding session was conducted on 25 November in this regard. In an online auction conducted early this month on 7 November, the government debt securities had attracted bids worth Rs10,439 crore from foreign investors against Rs12,715 crore on offer.
To boost inflows of foreign funds into Indian capital markets, markets regulator Sebi raised the FPI investment limit in government securities to Rs1.48 trillion from 3 October onwards. Prior to that, the limit was Rs1.44 trillion. This limit will be further increased to Rs1.52 trillion from 2 January next year.