NSE to auction investment limits for Rs2,100 crore government bonds
The debt auction quota gives foreign portfolio investors the right to invest in the debt up to the limit purchased
New Delhi: Leading bourse National Stock Exchange (NSE) on Friday said it will auction investment limits for foreign investors to purchase government bonds worth over Rs2,100 crore on Monday.
The auction will be conducted on NSE’s ebid platform from 1530hrs to 1730hrs after market hours, the exchange said in a circular. The debt auction quota gives foreign portfolio investors (FPIs) the right to invest in the debt up to the limit purchased.
Till Thursday, investment in government debt has reached Rs1,87,531 crore, which is 98.86% of total permitted limit of Rs1,89,700 crore. Consequently, the NSE would conduct an auction for the allocation of unutilised debt limits to the tune of Rs2,169 crore on 6 November.
A mock bidding session would be conducted on Friday to check the system’s performance. To boost the inflow of foreign funds into Indian capital markets, Securities and Exchange Board of India (Sebi) had last month raised the FPIs investment limit in government securities to Rs1,89,700 crore from Rs1,87,700 crore.
In an online auction conducted in October, the government debt securities had attracted bids worth Rs7,816 crore from FPIs as against Rs4,954 crore on offer.
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