SEBI to auction Rs. 420bn bonds for FIIs today

India Infoline News Service | Mumbai |

It would be the first auction for debt securities since a hike in the investment limits for FIIs

Market regulator SEBI (Securities and Exchange Board of India) today will conduct an auction worth over Rs. 420 billion for grant of investment limits to foreign investors in government debt securities.

Last week, a committee appointed by SEBI released its recommendations for improving foreign flows into the market.

The committee recommended existing FIIs, sub accounts and qualified foreign investors (QFIs) to be merged into a new investor class called “Foreign Portfolio Investor” (FPI). The aggregate investment limit will be 24% (being the present default aggregate limit for FIIs, which can be raised by the company up to the sectoral cap.

It would be the first auction for debt securities since a hike in the investment limits for FIIs in government debt to $30 billion, from $25 billion previously, earlier this month.
The bidding today would be held on a designated electronic exchange platform of the Bombay Stock Exchange between 3.30 pm and 5.30 pm, the stock exchange said in a circular.

The FIIs need to bid for investment limits in an auction conducted periodically by SEBI as per the available limits, pursuant to which they can invest in the bond market.

 

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