NSE to auction investment limits for Rs9,300 crore govt bonds

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New Delhi: Leading bourse National Stock Exchange (NSE) will auction investment limits for overseas investors for purchase of government debt securities worth over Rs9,300 crore on Monday.

The auction will be conducted on NSE-ebid platform during 1530-1730 hours, after the close of market trading. The debt auction quota gives overseas investors right to invest in the debt, up to the limit purchased.

According to latest data available with depositories, total investment in government debt has reached Rs1,38,667 crore till Thursday, which is 93.69% of total permitted limit of Rs1.48 lakh crore.

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs9,333 crore on Monday, 17 October 2016.

Besides, a mock bidding session would be conducted on Friday in this regard. In an online auction conducted last month, the government debt securities had attracted bids worth a staggering Rs6,821 crore from foreign investors as against Rs4,615 crore on offer.

To boost foreign flow, limit for overseas investors in central government securities has been increased from Rs1.40 lakh crore to Rs1.44 lakh crore from 5 July. Earlier, this limit was increased to Rs1.40 lakh crore from 4 April.

Prior to that, the limit was Rs1.35 lakh crore. To boost inflows of foreign funds into Indian capital markets, regulator Sebi raised the FPI investment limit in government securities to Rs1.48 lakh crore from 3 October onwards. This limit will be further increased to Rs1.52 lakh crore from 2 January, next year.