$12-b Govt, corporate debt will be up for sale

Close on the heels of the RBI hiking the FII investment limit in G-secs by $5 billion, the SEBI has decided that a special auction will be held on July 4 for allocation of this additional limit to such foreign investors.

The special auction will be done at the Bombay Stock Exchange between 3.30 and 5.30 p.m. on that day. It will be done through electronic bidding process, SEBI has said.

The minimum amount which can be bid would be Rs 1 crore. Also, no single entity will be allocated more than Rs 2,850 crore of the investment limit. Where a single entity bids on behalf of multiple entities, then such bid would be limited to Rs 2,850 crore for every such single entity, the capital market regulator has said.

The overall FII investment limit in G-secs now stands increased to $20 billion from $15 billion earlier.

Corporate debt

On July 4, BSE will also auction corporate debt – long term infra category (with one year lock-in and 15 months residual maturity) amounting to $7 billion (Rs 31,387 crore) through electronic bidding process.

The minimum amount that can be bid by a FII is Rs 1 crore. Also, no single entity can be allocated more than Rs 3,138 crore of the investment limit. Where a single entity bids on behalf of multiple entities, then such bid would be limited to Rs 3,138 crore for every such single entity.

krsrivats@thehindu.co.in

(This article was published on June 27, 2012)
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