NSE to auction investment limits for Rs 22,171 crore government bonds

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 22,171 crore on November 28.

By: PTI | New Delhi | Published:November 25, 2016 12:20 pm

Leading bourse National Stock Exchange (NSE) will auction investment limits for overseas investors for purchase of government debt securities worth Rs 22,171 crore on November 28. 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 Rs 1,25,829 crore till Thursday, which was 85.02 per cent of total permitted limit of Rs 1.48 lakh crore.

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 22,171 crore on November 28. Besides, a mock bidding session would be conducted on Friday.

In an online auction conducted early this month on November 7, the government debt securities had attracted bids worth Rs 10,439 crore from foreign investors against Rs 12,715 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 Rs 1.48 lakh crore from October 3 onwards. Prior to that, the limit was Rs 1.44 lakh crore. This limit will be further increased to Rs 1.52 lakh crore from January 2 next year.