NSE to auction investment limits for Rs4,500 crore govt bonds
NSE said it will auction investment limits on Monday, enabling foreign investors to purchase government bonds worth over Rs4,500 crore
New Delhi: Leading bourse NSE on Thursday said it will auction investment limits on Monday, enabling foreign investors to purchase government bonds worth over Rs4,500 crore.
The auction will be conducted on NSE’s e-bid platform from 3.30pm to 5.30pm after the market hours, the exchange said in a circular. The auction quota gives overseas investors the right to invest in debt up to the stipulated limit.
Till Wednesday, the total investment in the government debt category reached Rs1,86,731 crore, which is 97.61% of the total permitted threshold of Rs1,91,300 crore, according to the latest update with depositories.
Consequently, the exchange has decided to conduct an auction for the allocation of unutilized debt limits to the tune of Rs4,569 crore on Monday. To make trading members accustomed to the bidding platform, the exchange would be conducting a mock bidding session on Thursday.
In an auction conducted earlier this month, investment limits for government bonds had attracted bids to the tune of a staggering Rs11,988 crore by foreign portfolio investors (FPIs) against Rs6,666 crore put on offer.
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