Govt bonds over-subscribed; FIIs put in bids worth Rs 987-cr

Government bonds today attracted bids of Rs 987 crore from foreign investors against Rs 561 crore worth of securities put on offer.
The auction was held at BSE's ebidxchange platform for allocation of foreign institutional investors' investment limits in government debt securities worth Rs 561 crore.
At the end of two-hour auction this evening, 29 bids were declared successful.
The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.
Depository data showed that total investments, including limits acquired by foreign investors through the auction route, stood at Rs 1,23,876 crore till August 6, which is 99.5 per cent of the total permitted investment limit of Rs 1,24,432 crore in government debt securities.

A mock bidding session was conducted on Friday to check the system performance, BSE said.

In earlier auctions too, government bonds were subscribed multiple times, given the huge interest among foreign investors, while the demand for corporate bonds remained weak.
Earlier this month, National Stock Exchange conducted an auction for government bonds worth Rs 556 crore, which attracted bids worth Rs 974 crore.
Foreign investors are allowed to invest up to USD 25 billion (Rs 1,24,432 crore) in government debt securities through auction while an investment of up to USD 5 billion (Rs 29,137 crore) is permitted 'on tap'.
Further, the Reserve Bank of India is in talks with the government to reset FII limit in government bonds in rupee terms.