Millennium Post

Sebi to auction `10,000 cr debt securities for FIIs this week

Enthused by growing interest of foreign investors in debt securities in India, Sebi will conduct an auction this week for investment worth over Rs 10,000 crore by foreign investors. The auction will be conducted on 20 November in both the government and corporate debt securities.

There are individual caps on investment by FIIs (Foreign Institutional Investors) 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 of Rs 7,852 crore  last month. A higher amount of Rs 10,016 crore was invested by FIIs into the Indian debt market in February this year.

This month Sebi is holding auction for government and corporate debt security investments worth a total of Rs 10,616 crore or over USD 1.9 billion. Sebi has relaxed norms for FIIs' debt investment by allowing them to avail the debt limits in the corporate debt without obtaining its approval till the overall FII investments reaches 90 per cent of a prescribed cap of Rs 53,806 crore.
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