NSE to auction investment limits for Rs 4,500 crore govt bonds

New Delhi: Leading bourse NSE on Thursday said it will auction investment limits on Monday, enabling foreign investors to purchase government bonds worth over Rs 4,500 crore.

The auction will be conducted on NSE’s e-bid platform from 1530 hrs to 1730 hrs after the market hours, the exchange said in a circular. The auction quota gives overseas investors the right to invest in debt up to the stipulated limit.

Till Wednesday, the total investment in the government debt category reached Rs 1,86,731 crore, which is 97.61 per cent of the total permitted threshold of Rs 1,91,300 crore, according to the latest update with depositories.

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 4,569 crore on Monday, January 29. To make trading members accustomed to the bidding platform, the exchange would be conducting a mock bidding session on Thursday.

In an auction conducted earlier this month, investment limits for government bonds had attracted bids to the tune of a staggering Rs 11,988 crore by foreign portfolio investors (FPIs) against Rs 6,666 crore put on offer.