Govt bonds worth Rs 7,152 cr to be auctioned tomorrow for FIIs

Tags: News
The National Stock Exchange (NSE) will auction tomorrow government debt securities worth Rs 7,152 crore (USD 1.2 billion) for overseas investors, whose total investment has crossed 90 per cent of permitted limit.

At the same time, NSE in a circular also asked foreign investors not to increase their positions in interest rate futures (IRF) market as such exposure has also crossed the permitted levels. A similar circular was released by BSE as well.

These decisions come amid a strong surge in overseas investors interest in Indian bond market.

Their total investment in government debt has reached Rs 92,394 crore on June 9, which is 92.82 per cent of total permitted limit of Rs 99,546 crore.

Consequently, NSE will conduct an auction tomorrow for allocation of unutilised investment limits worth Rs 7,152 crore in government debts, the bourse said in its circular issued today.

The auction will begin at 1530 hours and close on 1730 hours. A mock bidding session was conducted today to check the system performance.

Besides, NSE said: "FIIs (Foreign Institutional Investors) are advised not to increase their long position in IRF till the time the overall long position of FIIs in cash and IRF comes below 85 per cent of existing permissible limit."

To boost foreign fund inflows into the capital markets here, regulator Sebi in September last year, allowed overseas entities to invest in government securities without any auction till such investments reach 90 per cent of permitted limits.

Once this limit is reached, the auction mechanism now get triggered for allocation of the remaining limits.

FIIs have invested a net amount of over Rs 52,000 crore in debt market so far in 2014 itself. Equity market has also seen similar trends with overseas fund inflow of over Rs 50,000 crore since the beginning of the year.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Exchange managements must distinguish between speculation and gambling

    Every bull run in the Indian equity market raises the spectre of excessive speculation.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

Building smart cities the Indian way

Today more than half of the world’s population lives in ...

Zehra Naqvi

The mere display of power is not success

The stars are not afraid to appear like fireflies —Rabindranath Tagore ...

Dharmendra Khandal

Let the tiger breathe in its natural home

The world has been observing July 29 as International Tiger ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture