BackNSE to auction government bonds worth Rs646 cr on Tuesday
The auction will begin at 3.30pm and close at 5.30pm while a mock bidding session would be conducted on Monday
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New Delhi: Leading bourse, National Stock Exchange (NSE) will auction government debt securities worth ₹ 646 crore for overseas investors on Tuesday, whose total investment has crossed 99% of permitted limit.
The auction would be conducted for overseas investors at “nse-ebid" platform for government debt securities, as per information provided by the bourse.
The total overseas investments in government debt securities through auction route has touched 1,23,786 crore as on 17 October, which is which is 99.48% of total permitted limit of ₹ 1,24,432 crore.
“Consequently, exchange shall conduct an auction for the allocation of unutilized debt limits on 21 October 2014 (Tuesday)," NSE said in a circular.
The auction will begin at 3.30pm and close at 5.30pm. A mock bidding session would be conducted on Monday, 20 October, to check the system performance.
The debt auction quotas give overseas investors the right to invest in debt up to the limit purchased.
Earlier this month, BSE had conducted auction for government bonds worth ₹ 4,176 crore, which attracted bids to the tune of ₹ 8,961 crore.
Foreign investors have put in over ₹ 1.28 trillion in the debt market so far in 2014. The equity market has also seen similar trends with overseas fund inflows of over ₹ 79,000 crore since the beginning of the year.
According to market experts, overseas investors have been pumping money in the country’s debt market primarily on account of government’s reforms agenda and the Reserve Bank of India’s (RBI) pledge to tame inflation.
As per norms, foreign investors can purchase up to $25 billion in government debt without restrictions. Exchanges initiate the auction mechanism once overseas investor reach 90% of that limit.
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