India to sell $7.15 billion in debt quotas to foreign investors

 

India will auction Rs 420.22 billion in unused government debt limits to foreign investors on June 20, a source with direct knowledge of the plans said on Wednesday.

 

Market regulator Securities and Exchange Board of India (SEBI) had earlier announced it would auction unused debt limits on Thursday, but had not disclosed the exact amount.

 

These debt quotas give foreign investors the right to invest in debt up to the limit bought.

 

Foreign investors have sold $4.7 billion rupees in government debt over 18 consecutive sessions until Friday as the rupee has slumped to a record low, thus eroding returns.

 

This will mark India's first auction since raising investment limits for foreign investors in government debt by $5 billion to $30 billion, though that increase applies only to long-term investors and will be available on a first come, first serve basis.

 

A SEBI panel last week also recommended further easing registration for foreign investors across all markets in India.