BSE to auction investment limits for Rs 7,396 cr govt bonds

Sunday, Jan 3, 2016,15:21 IST By Metrovaartha A A A

New Delhi | Leading bourse BSE will tomorrow auction investment limits for foreign investors to buy government debt securities worth Rs 7,396 crore. It would include the increased investment cap announced by market regulator Sebi in October.

The auction will be conducted on BSE’s ebidxchange platform from 1530 hours to 1730 hours, after the close of market hours on Monday, January 4, the exchange said in a circular.

Total debt limits worth Rs 7,396 crore, including new limits, would be auctioned on the exchange platform.

The debt auction quota gives overseas investors the right to invest in bonds, up to the limit purchased.

During earlier auctions, government bonds have always been subscribed multiple times, given the huge interest among foreign investors, while the demand for corporate bonds remained subdued.

Earlier in October, Sebi announced enhancing the limit for investment by FPIs in government securities in two tranches from October 12, 2015 and January 1, 2016.

The limit for overseas investors in securities was hiked to Rs 1,29,900 crore from October 12 and it would be further increased to Rs 1,35,400 crore from January 1, 2016.

Prior to the October limit, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.