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BSE to auction investment limits for Rs 5,600-cr govt bonds
Leading bourse BSE, will on Monday, auction investment limits for foreign investors to buy government debt securities worth Rs 5,600 crore.
New Delhi: Leading bourse BSE, will on Monday, auction investment limits for foreign investors to buy government debt securities worth Rs 5,600 crore.
It would include the increased investment cap announced by markets regulator Sebi last week.
The auction will be conducted on BSE's ebidxchange from 1530 hours to 1730 hours, after the close of market hours on Monday, October 12, the exchange said in a circular.
A total of debt limits worth Rs 5,600 crore, including new limits, would be auctioned on the exchange platform.
The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.
A mock bidding session was conducted on Friday to check the system performance.
During earlier auctions, government bonds have always been subscribed multiple times, given the huge interest among foreign investors, while the demand for corporate bonds remains less.
Last month, an auction for government bonds worth Rs 661 crore had attracted bids to the tune of Rs 1,561 crore.
Sebi has decided to enhance 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 would be hiked to Rs 1,29,900 crore and Rs 1,35,400 crore on October 12 this year and January 1, 2016, respectively.
Currently, they are allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.