Govt bonds oversubscribed; FPI bids for $4.6 bn

Government debt securities today saw robust response from foreign investors, attracting bids worth USD 4.6 billion as against USD 3.2 billion on offer.
The online auction was conducted on NSE's 'e-bid' platform from 1530 hrs to 1730 hrs after the market closed. At the end of the 2-hour auction, 66 bids were declared successful.
Foreign portfolio investors (FPIs) have bid for investment limits in government debt securities worth Rs 29,950 crore (USD 4.62 billion) as against Rs 20,397 crore (USD 3.15 billion) on offer, exchange data showed.
The debt auction quota gives overseas investors the right to invest up to the limit purchased.

The total investment in government debt has reached Rs 1,68,143 crore till July 3 -- 90.94 per cent of the total permitted limit of Rs 1,84,901 crore, as per the latest data available with depositories.
Consequently, the exchange had decided to conduct an auction for the allocation of unutilised debt limit. A mock bidding session was conducted yesterday to check the system's performance.
In an online auction last month, government debt securities had attracted bids worth Rs 16,708 crore from foreign investors as against Rs 18,437 crore on offer.
To boost inflows of foreign funds into Indian capital markets, regulator Sebi yesterday raised the FPI investment limit in government securities to Rs 1,87,700 crore. Prior to that the limit was Rs 1,84,901 crore.