Govt bonds subscription sees robust response, FPIs bid for $4.6 billion
New Delhi: The government debt securities on Wednesday saw robust response from foreign investors, attracting bids worth $4.6 billion as against$3.2 billion on offer.
The online auction was conducted on NSE’s ‘e-bid’ platform from 1530 hours to 1730 hours after the market closed. At the end of the 2-hour auction, 66 bids were declared successful.
Foreign portfolio investors (FPIs) have bid for investment limits in the government debt securities worth Rs29,950 crore ($4.62 billion) as against Rs20,397 crore ($3.15 billion) on offer, exchange data showed. The debt auction quota gives overseas investors the right to invest up to the limit purchased.
The total investment in government debt has reached Rs1,68,143 crore till 3 July— 90.94% of the total permitted limit of Rs1,84,901 crore, as per the latest data available with depositories.
Consequently, the exchange had decided to conduct an auction for the allocation of unutilised debt limit. A mock bidding session was conducted on Tuesday to check the system’s performance.
In an online auction last month, government debt securities had attracted bids worth Rs16,708 crore from foreign investors as against Rs18,437 crore on offer.
To boost inflows of foreign funds into Indian capital markets, regulator Sebi yesterday raised the FPI investment limit in government securities to Rs1,87,700 crore. Prior to that the limit was Rs1,84,901 crore.
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