New Delhi: Leading stock exchange BSE will auction on Tuesday investment limits for overseas investors for purchase of government debt securities worth Rs 8,114 crore.
The auction will be conducted on BSE's e-bidxchange platform from 3:30 p.m. to 5:30 p.m., after the close of market hours.
Besides, from Tuesday, the limit for overseas investors in central government securities will be increased to Rs 1.44 lakh crore. This limit was hiked to Rs 1.4 lakh crore from April 4. Prior to that, the limit was Rs 1.35 lakh crore.
The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.
"Live bidding session for allocation of debt investment limits for FII/FPI/Sub Accounts shall be conducted on Tuesday, July 5, 2016, on Exchange's ebidxchange platform," BSE said in a circular.
Last month, government debt securities witnessed a lukewarm response in an online auction. It had attracted bids worth Rs 4,011 crore from foreign investors as against securities to the tune of Rs 4,046 crore put on offer.
According to data with depositories, total investment in government debt had reached Rs 1,33,051 crore till June 23, which is 95.04 per cent of total permitted limit of Rs 1,40,000 crore.
Consequently, the exchange has decided to conduct an auction for the allocation of unutilized debt limits on July 5.
A mock bidding session would be conducted today in this regard.
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