Govt bonds oversubscribed; FPIs bid for USD 2.3 bn

Government debt securities today saw robust response from foreign investors, attracting bids USD 2.3 billion as against USD 1.7 billion on offer.

The online auction was conducted on BSE's ebidxchange platform from 1530 hrs to 1730 hrs after the market closed. At the end of the two-hour auction, as many as 44 bids were declared successful out of 58.

Foreign portfolio investors (FPIs) bid for investment limits in government debt securities worth Rs 14,698 crore (USD 2.3 billion) as against Rs 10,922 crore (USD 1.7 billion) on offer, exchange data showed.

The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased.

A mock bidding session was conducted yesterday to check the system's performance in this regard.

In an online auction conducted earlier this month, government debt securities had attracted bids worth Rs 29,950 crore from foreign investors as against Rs 20,397 crore on offer.

To boost inflows of foreign funds into Indian capital markets, regulator Sebi earlier this month 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.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)