FIIs place bids worth Rs 813 crore for govt bonds

Rs 310 crore auction for debt securities oversubscribed more than two times

Signalling strong demand for government bonds, overseas investors have put in bids worth Rs 813 crore, oversubscribing a Rs 310 crore auction for debt securities by more than two times.

The auction was held at 'NSE-ebid' platform for allocation of investment limits in government debt securities worth Rs 310 crore ($50.2 million). The auction attracted bids for Rs 813 crore ($131.64 million), as per the bourse.

At the end of two-hour auction last evening, as many as 43 bids were made in the auction, of which 21 were declared successful. The debt auction quotas give overseas investors the right to invest in debt up to the limit purchased.

Foreign investors have so far put in over Rs 23,000 crore in the debt market in 2015. The equity market has also seen similar trends with overseas fund inflows of more than Rs 18,244 crore since the beginning of the year.

According to market experts, overseas investors have been pumping money in the country's debt market primarily on account of government's reforms agenda and the RBI's rate cut measure.

As per norms, foreign investors can purchase up to $25 billion in government debt without restrictions. Exchanges initiate the auction mechanism once overseas investors reach 90 per cent of that limit.