Foreign investors fail to bid for complete quota of govt bonds on offer in auction
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New Delhi: Government debt securities attracted bids worth Rs16,708 crore from foreign portfolio investors (FPIs) as against Rs18,437 crore on offer in an online auction on Thursday. The auction was conducted on BSE’s ‘ebidXchange’ platform from 3:30pm to 5:30pm after the close of market hours.
At the end of the two-hour auction, all the 33 bids were declared successful. FPIs have bid for investment limits in government debt securities worth Rs16,708 crore ($2.6 billion) as against Rs18,437 crore ($2.8 billion) on offer, exchange data showed. The bonds to the tune of Rs1,729 crore were left unsubscribed after the auction.
The debt quota gives overseas investors the right to invest in the debt, up to the limit purchased.
This was the first auction in seven months. Prior to that, an auction for government bonds to the tune of Rs22,171 crore was conducted in November 2016. The securities had attracted bids worth Rs12,287 crore. To boost inflows of foreign funds into Indian capital markets, the Securities and Exchange Board of India (Sebi) in April raised the FPI investment limit in central government securities to Rs1.85 lakh crore from Rs1.52 lakh crore.