BSE to auction investment limits for Rs 332-cr govt bonds

Friday, Nov 20, 2015,13:12 IST By Metrovaartha A A A

New Delhi | Leading stock exchange BSE on Monday will auction investment limits for foreign investors to buy government debt securities worth Rs 332 crore. The auction will be conducted on BSE ebidxchange platform from 1530 hours to 1730 hours after the close of market hours on Monday, November 23, the exchange said in a circular issued today.

The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased. A mock bidding session will be conducted today to check the system performance. Depository data showed that total investments, including limits acquired by foreign investors through the auction route, stood at Rs 1,29,048 crore till October 29, which is 99.34 per cent of the total permitted investment limit of Rs 1,29,900 crore in government debt securities.

During earlier auctions, government bonds were subscribed multiple times, given the huge interest among foreign investors while the demand for corporate bonds remains less. Earlier this month, an auction for government bonds worth Rs 852 crore had attracted bids to the tune of Rs 1,678 crore.

The Securities and Exchange Board of India (Sebi) has decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12 to January 1. The limit for overseas investors in securities has been hiked to Rs 1,29,900 crore on October 12 and would be further shored-up to Rs 1,35,400 crore from January 1. Earlier, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.