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Govt bonds short of the crease, FPIs bid for Rs 12,287-cr

Press Trust of India  |  New Delhi 

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 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 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 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 28 2016. 20:23 IST