Oct 18, 2016 12:39 PM IST IST | Source: PTI

Govt bonds receive bids worth Rs 9,458 cr from FPIs

The auction was conducted on NSE's 'e-bid' platform from 1530 hours to 1730 hours, after the close of market hours. At the end of the two-hour auction, 51 bids were declared successful out of 55.

Government debt securities attracted bids worth Rs 9,458 crore from Foreign Portfolio Investors (FPIs) as against Rs 9,333 crore on offer in an online auction.

The auction was conducted on NSE's 'e-bid' platform from 1530 hours to 1730 hours, after the close of market hours. At the end of the two-hour auction, 51 bids were declared successful out of 55.

The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.

The total investment in government debt had reached Rs 1,38,667 crore till October 13, which is 93.69 per cent of total permitted limit of Rs 1.48 lakh crore.

Consequently, the exchange had decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 9,333 crore.

A mock bidding session was conducted for this on Friday.

In an online auction conducted last month, the government debt securities had attracted bids worth a staggering Rs 6,821 crore from foreign investors as against Rs 4,615 crore on offer.

To boost inflows of foreign funds into Indian capital markets, regulator Sebi raised the FPI investment limit in government securities to Rs 1.48 lakh crore from October 3 onwards. This limit will be further increased to Rs 1.52 lakh crore from January 2, next year.

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