The auction will be conducted on BSE's ebidxchange platform from 1530 hrs 1730 hrs after market hours, the exchange said in a circular.
The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.
"Live bidding session for allocation of debt investment limits (of Rs 4,954 crore) for FII/FPI/sub-accounts shall be conducted on October 16, 2017 on exchange's 'ebidxchange' platform," the BSE said.
A mock bidding session was conducted today to check the system's performance after the close of markets.
To boost the inflow of foreign funds into Indian capital markets, Sebi had earlier this month raised the Foreign Portfolio Investors (FPIs) investment limit in government securities to Rs 1,89,700 crore from Rs 1,87,700 crore.
In an online auction conducted in late September, government debt securities had attracted bids worth Rs 4,541 crore from foreign investors as against Rs 2,786 crore on offer.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)