Govt bonds attracts bids worth Rs. 9,458 cr from FPIs
The Dollar Business Bureau Government debt securities received bids amounting to Rs.9,458 crore from FPIs (Foreign Portfolio Investors) in an online auction, against the Rs.9,333 crore on offer. National Stock Exchange (NSE) conducted the auction on its 'e-bid' platform between 3:30 pm and 5:30 pm, after closing of the market hours. Out of 55 bids, 51 were declared successful, after closing of the two-hour auction. The quota of debt auction provides foreign investors the right for investment in the debt up to the purchased limit. Till October 13, the overall investment in government debts had touched Rs.1,38,667 crore, which is around 94 percent of the total allowed limit of Rs.1.48 lakh crore. In order to allocate the unutilised debt limits amounting to Rs.9,333 crore, the NSE ...
RBI to buy Govt bonds worth Rs.15,000 cr via OMO
The Dollar Business Bureau In order to infuse liquidity in to the banking system, the Reserve Bank of India (RBI) will purchase government bonds amounting to Rs.15,000 crore via open market operations (OMO) next week. The latest announcement comes barely a week after the bank bought government securities worth Rs.15,000 crore through OMO. In a statement released on Friday, the RBI said, “On the basis of recent assessment of prevalent and growing liquidity conditions, the Bank has decided to buy government securities under OMO for an average amount of Rs.150 billion on May 31.” There is a total aggregate limit of Rs.150 billion for all the government securities taken together. Purchase of extra securities would help the bank to release the ...
RBI to infuse liquidity through OMO
The Dollar Business Bureau The Reserve Bank of India is planning to buy government bonds worth Rs 15,000 crore through open market operation(OMO), with a view to infuse liquidity into the market. The central bank in a statement issued on May 23 said that, after assessing the prevailing and evolving liquidity condition, the RBI has decided to purchase bonds through government securities under the open market operations for an amount of Rs.150 billion on May 25. However, there is a comprehensive limitation of Rs 150 billion for all the securities put together. The purchase of these securities will help release similar amount of money in the market and ease the conditions of liquidity. RBI also said that due to the rounding off and other relevant ...
RBI to allow Rs.1,200 bn additional foreign investments in government bonds
The Dollar Business Bureau The Reserve Bank of India has decided to increase the investment limits in government securities for foreign portfolio investors (FPI) up to 5% of the outstanding stock by March 2018. “In aggregate terms, this is expected to open up room for additional investment of Rs.1,200 billion in the limit for central government securities by March 2018 over and above the existing limit of Rs.1,535 billion for all government securities (G-sec),” the RBI said in its bi-monthly monetary policy statement on Tuesday. The move is aimed at having a more predictable regime for investment by the foreign portfolio investors (FPI). Besides, the limits for FPIs in debt securities issued by state governments, also known as State Development Loans (SDLs), ...
Talking to government to hike FPI cap in govt bonds: RBI Governor
Source: PTI Reserve Bank is in discussions with the Finance Ministry to raise the Foreign Portfolio Investment (FPI) cap in government bonds, Governor Raghuram Rajan said today. After discussions, RBI will formulate a framework to raise the investment limit for such investors in government debt securities, which will be pegged to the rupee against the current practice of linking it to the dollar, he said. "The overall goal of this medium-term framework will be to enlist FPIs in market development within prudential limits which we set even as they are attracted by the rates available in domestic bonds," Rajan told reporters at the customary post-policy press conference here today. The proposed framework, expected by next month, will include a target for what ...
RBI puts G-Sec worth Rs 10,000 crore up for auction next week
The Dollar Business Bureau In an effort to mop up liquidity from the system, the Reserve Bank of India (RBI) will sell government bonds worth Rs. 10,000 crore in the open market next week. The RBI has decided to sell government securities under Open Market Operations after “an assessment of the current and evolving liquidity conditions”. Securities with maturity dates ranging from 2018 to 2035 will be auctioned on July 14 through multi price method. “There is an overall aggregate ceiling of 10,000 crore for all the securities in the basket put together. There is no security-wise notified amount,” the central bank said in a statement issued on Friday. Securities to be auctioned will bear interest rates ranging from 7.40% to ...
