New Delhi: Leading bourse, National Stock Exchange (NSE) will auction government debt securities worth Rs 646 crore for overseas investors on Tuesday, whose total investment has crossed 99% of permitted limit.
The auction would be conducted for overseas investors at 'nse-ebid' platform for government debt securities, as per information provided by the bourse. The total overseas investments in government debt securities through auction route has touched Rs 1,23,786 crore as on October 17, which is which is 99.48 per cent of total permitted limit of Rs 1,24,432 crore.
"Consequently, exchange shall conduct an auction for the allocation of unutilized debt limits on October 21, 2014 (Tuesday)," NSE said in a circular. The auction will begin at 1530 hours and close at 1730 hours. A mock bidding session would be conducted on Monday, October 20, to check the system performance.
The debt auction quotas give overseas investors the right to invest in debt up to the limit purchased. Earlier this month, BSE had conducted auction for government bonds worth Rs 4,176 crore, which attracted bids to the tune of Rs 8,961 crore. Foreign investors have put in over Rs 1.28 lakh crore in the debt market so far in 2014.
The equity market has also seen similar trends with overseas fund inflows of over Rs 79,000 crore since the beginning of the year. According to market experts, overseas investors have been pumping money in the country's debt market primarily on account of government's reforms agenda and the RBI's pledge to tame inflation. As per norms, foreign investors can purchase up to USD 25 billion in government debt without restrictions. Exchanges initiate the auction mechanism once overseas investor reach 90 per cent of that limit.
