Close on the heels of the Reserve Bank of India hiking the FII investment limit in Government securities by $5 billion, the SEBI has decided to hold a special auction on July 4.
The Securities and Exchange Board of India will hold the special auction at the Bombay Stock Exchange between 3.30 p.m and 5.30 p.m. through the electronic bidding process, official sources said.
The minimum amount that 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, such a bid would be limited to Rs 2,850 crore for every single entity, according to SEBI.
The overall FII investment limit in G-secs now stands increased to $20 billion from $15 billion earlier.
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 for such corporate debt 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 a bid would be limited to Rs 3,138 crore for every single entity.