BSE to auction investment limits for Rs 5,500-cr govt bonds

Leading bourse BSE will on Monday auction investment limits for foreign investors to buy government debt securities worth Rs 5,500 crore along with free limits available under the current cap.
Foreign Portfolio Investors (FPIs) are currently allowed to invest up to Rs 129,900 crore in central government securities under the auction route. This limit will be increased by Rs 5,500 crore from January 1 next year.
As of December 30, limits available for investment by FPIs stood at Rs 1,858 crore.
"The final bidding amount i.E new incremental debt limit of Rs 5,500 crore, along with the free limit as on January 1, 2016 within the Rs 129,900 crore limit shall be informed via separate circular," BSE said.

The auction will be conducted on BSE's ebidxchange from 1530 hours to 1730 hours, after the close of market hours on Monday, January 4, the exchange said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.

Earlier in October, Sebi announced to enhance the limit for investment by FPIs in government securities in two tranches from October 12, 2015 and January 1, 2016.
The limit for overseas investors in securities was hiked to Rs 1,29,900 crore from October 12 and it would further increased to Rs 1,35,400 crore from January 1, 2016.

Prior to October limit, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.