NSE to auction govt debt worth Rs 2,684 crore on Monday

New Delhi: Investment limits for government debt securities worth Rs 2,684 crore will be auctioned for overseas investors on the National Stock Exchange (NSE) on Monday.

The auction would take place on leading stock exchange NSE's e-bid platform from 1530 hours to 1730 hours, after close of normal market hours, on May 18.

A mock bidding session was conducted today to check the system performance.

According to information available with the depositories, the total investments, including limits acquired by foreign investors through auction route, stood at Rs 1,21,748 crore till yesterday, which is 97.84 of total permitted limit of Rs 1,24,432 crore.

"Consequently, exchange shall conduct an auction for the allocation of unutilized debt limits on May 18, 2015," NSE said in a circular today.

The earlier auctions for government debt securities have always been over-subscribed multiple times, given the huge interest among foreign investors for these bonds.

The demand for corporate debt securities among foreign investors is less as compared to government bonds.

Foreign investors are allowed to invest up to USD 25 billion (Rs 1,24,432 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'.