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BSE to auction govt bonds worth Rs 3,208 crore today

Leading stock exchange BSE will auction on Friday government debt securities worth Rs 3,208 crore for overseas investors.

This would be the first auction after Sebi tweaked the investment limits for overseas investors in government securities by increasing the threshold for general investors from $20 billion to $25 billion.

In a circular BSE said: ‘Live bidding session for allocation of debt investment limits for FII (foreign institutional investors) and sub-accounts shall be conducted on Friday, 22 August, 2014 on exchange's 'ebidxchange' platform.’

The auction will begin at 1530 hours and close at 1730 hours. A mock bidding session would be conducted today to check the system performance. The total overseas investments in government debt securities (through auction route) has reached Rs 1,21,224 crore.

Separately, exchanges have asked foreign investors not to take any fresh investment position in the interest rate futures (IRF) market as the foreign investors' exposure to government debt reached 97.2 per cent of permitted limit of $25 billion (Rs 1,24,432 crore).

Overseas investors are advised not to increase their long position in IRF till the time the overall long position of such investors in cash and IRF comes below 85 per cent of existing
permissible limit.
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