NSE to auction investment limits for Rs 556 crore government bonds

New Delhi: Leading bourse National Stock Exchange (NSE) will auction investment limits for foreign investors to buy government debt securities worth Rs 556 crore on Monday. The auction will be conducted on NSE's e-bid platform after close of normal market hours on August 10, the exchange said in a circular. The debt auction quota gives overseas investors the right   to invest in the debt up to the limit purchased.  

Depository data showed that total investments, including   limits acquired by foreign investors through the auction   route, stood at Rs 1,23,876 crore till August 6, which is 99.5 per cent of the total permitted investment limit of Rs 1,24,432 crore in government debt securities. "Consequently, exchange shall conduct an auction for the   allocation of unutilized debt limits on August 10, 2015," NSE   said.   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, BSE (formerly known as Bombay Stock Exchange)   had conducted an auction for government bonds worth Rs 403   crore, which attracted bids worth Rs 751 crore. Foreign investors are allowed to invest up to USD 25 billion (Rs 1,24,432 crore) in government debt securities   through auction while an investment of up to USD 5 billion (Rs   29,137 crore) is permitted 'on tap'. Further, the Reserve Bank of India (RBI) is in talks with   the government to reset FII limit in government bonds in rupee terms.