Foreign investors continue to remain positive on the Indian government debt, with the auction today attracting bids worth Rs 6,810 crore, higher than securities put on offer.
The auction, which was held on BSE's ebidxchange platform for allocation of Foreign Portfolio Investors (FPIs) investment limits in government debt securities worth Rs 5,035 crore, received bids for Rs 6,810 crore, as per information available with the exchange.
The auction was conducted from 3.30 PM to 5.30 PM - after the close of market hours'
The debt auction quota gives overseas investors the right to invest in bonds, up to the limit purchased.
Depository data showed that total investments including limits acquired by foreign investors through auction route stood at Rs 1,30,719 crore till March 3, which was 96.54 per cent of the total permitted investment limit of Rs 1,35,400 crore in the government debt securities.
In earlier auctions, government bonds have been subscribed multiple times, given the huge interest among the foreign investors.
An auction of government debt securities on March 8 had attracted bids worth Rs 6,463 crore from foreign investors as against Rs 4,681 crore put on offer.
To boost the inflow of foreign funds into Indian capital markets, the limit for overseas investors in securities was hiked to Rs 1,29,900 crore from October 12, and it was further increased to Rs 1,35,400 crore from January 1, 2016.
Prior to the October limit, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.
