New Delhi: The National Stock Exchange (NSE) on Friday said it will auction investment limits for overseas investors for the purchase of government and corporate debt securities totalling over Rs8,800 crore on Monday.
The auction would be conducted for investment limits worth Rs5,481 crore of government debt securities, while the same would be Rs3,360 crore for corporate bonds, NSE said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchase.
The auction will be conducted on NSE’s e-bid platform from 3.30pm to 5.30pm, after market hours.
Till yesterday, total investment in government debt reached Rs1,82,219 crore—which was 97.08% of total permitted limit of Rs1,87,700 crore—while the same in corporate bond stood at Rs2,40,963 crore (98.62% of total permitted limit of Rs2,44,323 crore).
Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits on 14 August.
Besides, a mock bidding session will be conducted today to check the system’s performance. In an auction conducted last month, corporate bonds received an overwhelming response from foreign portfolio investors (FPIs) and attracted bids worth Rs10,442 crore as compared to Rs7,418 crore on offer.
Further, government debt securities also witnessed robust response from FPIs and attracted bids to the tune of Rs14,698 crore as against Rs10,922 crore on offer.