Government debt securities today saw a lukewarm response from foreign investors and attracted bids worth just Rs 12,287 crore as against Rs 22,171 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 2-hour auction, all the 32 bids were declared successful. Foreign portfolio investors (FPIs) have bid for investment limits in government debt securities worth Rs 12,287 crore (USD 1.8 billion) as against Rs 22,171 crore (USD 3.24 billion)on offer, exchange data showed. The bonds to the tune of Rs 9,884 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. In an online auction conducted early this month on November 7, the government debt securities had attracted bids worth Rs 10,439 crore from foreign investors against Rs 12,715 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. Prior to that, the limit was Rs 1.44 lakh crore. This limit will be further increased to Rs 1.52 lakh crore from January 2 next year.
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