Investment limits for government debt securities worth Rs 893 crore will be auctioned on the BSE on Monday as over 99 per cent of permitted investment levels for overseas investors have been exhausted.
The auction would take place on the top stock exchange BSE’s ‘ebidxchange’ platform from 3.30 pm to 5.30 pm, after close of normal market hours on March 16, the bourse said in a circular today.
The earlier auctions for the government debt securities have always been over-subscribed multiple times, given the huge interest among foreign investors for these bonds.
Foreign investors are allowed to invest up to USD 25 billion (Rs 124,432 crore) in government debt securities through auction route, while an investment of up to USD 5 billion (Rs 29,137 crore) is permitted ‘on tap’.
As per the latest data from depositories, the total investments, including limits acquired by foreign investors in the auction route, currently stands at Rs 123,539 crore, exhausting 99.28 per cent of the permitted levels.
Out of this, Rs 123,414 crore worth investments have been made already while foreign investors have got unutilised investment limits worth Rs 125 crore available with them.
This leaves available debt securities worth Rs 893 crore, limits for which would be auctioned on Monday.
In the ‘on-tap’ category also, the total investments currently stands at Rs 29,069 crore, exhausting 99.77 per cent of the permitted levels.
The demand for corporate debt securities among foreign investors is less as compared to government bonds.
Foreign investors can invest up to USD 51 billion (Rs 244,323 crore) in corporate bonds, while their total investment in this category currently stands at Rs 179,426 crore (about 73 per cent).