Government debt limit auction attracts robust demand from FPIs

NEW DELHI: Government bonds today attracted bids worth USD 568 million from foreign portfolio investors (FPIs) in an auction of investment limits for such securities, much higher than the USD 336 million on offer.

The auction was conducted on NSE's e-bid platform from 1530 hrs 1730 hrs after market hours, as per the exchange data. Of the 42 bids, 29 were declared successful.

FPIs bid Rs 3,666 crore (USD 568 million) for investment limits in government debt securities as against Rs 2,169 crore (USD 336 million) on offer.


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

Till Thursday, investment in government debt stood at Rs 1,87,531 crore, which was 98.86 per cent of total permitted limit of Rs 1,89,700 crore.

Consequently, the National Stock Exchange (NSE) decided to conduct the auction for the allocation of unutilised debt limits.

To boost the inflow of foreign funds into Indian capital markets, Sebi had last month raised the FPIs investment limit in government securities to Rs 1,89,700 crore from Rs 1,87,700 crore.

In an online auction conducted last month, the government debt securities had attracted bids worth Rs 7,816 crore from FPIs, as against Rs 4,954 crore on offer.