SEBI to auction over Rs10,000 crore debt investment for FIIs
MDT/PTI 19 November 2012

SEBI is conducting auction in government and corporate debt security investments worth Rs10,616 crore or over $1.9 billion on 20th November for foreign investors

 
New Delhi: Enthused by growing interest of foreign investors in debt securities in the country, market regulator  Securities and Exchange Board of India (SEBI) will conduct an auction this week for investment worth over Rs10,000 crore by foreign investors, reports PTI.
 
The auction will be conducted on 20th November in both the government and corporate debt securities.
 
There are individual caps on investment by foreign institutional investors (FIIs) in each category and SEBI conducts monthly auctions for the available limits within these caps.
 
At the last month's auction, the FIIs had bid aggressively for both the government and corporate bonds.
Incidentally, the FII investment in Indian debt market hit its eight-month high level of Rs7,852 crore (about $1.5 billion) last month.
 
A higher amount of Rs10,016 crore was invested by FIIs into the Indian debt market in February this year.
 
This month, SEBI is conducting auction for government and corporate debt security investments worth a total of Rs10,616 crore or over $1.9 billion.
 
SEBI has relaxed norms for FIIs' debt investment by allowing them to avail the debt limits in the corporate debt (long-term infrastructure category) without obtaining its approval till the overall FII investments reaches 90% of a prescribed cap of $12 billion (Rs53,806 crore).
 
After 90% of this limit, FIIs would need to bid through an auction mechanism for allocation of remaining limits or about Rs5,381 crore in this category.
 
As per SEBI data, an investment limit of about Rs26,000 crore was available in this category as on 31 October 2012.
 
There are two categories of government debt bonds with $10 billion of FII investment cap in each of them, while different categories of corporate debt securities face investment limits ranging from $one billion to $20 billion.
 
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