Govt bonds oversubscribed, FPIs put in bids worth Rs 521 crore

New Delhi: Signalling robust demand for government bonds, an auction of debt securities Monday received bids worth Rs 521 crore, higher than securities to the tune of Rs 332 crore put on offer, from foreign investors.

The auction was held at BSE's e-bidxchange bid platform for allocation of Foreign Portfolio Investors (FPIs) investment limits in government debt securities.

At the end of two-hour auction this evening, 18 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 1,29,048 crore till October 29, which is 99.34 per cent of the total permitted investment limit of Rs 1,29,900 crore in government debt securities.

During earlier auctions, government bonds were subscribed multiple times, given the huge interest among foreign investors.

Earlier this month, an auction for government bonds worth Rs 852 crore had attracted bids to the tune of Rs 1,678 crore.

The Securities and Exchange Board of India (Sebi) has decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12 to January 1.

The limit for overseas investors in securities has been hiked to Rs 1,29,900 crore on October 12 and would be further shored up to Rs 1,35,400 crore from January 1.

Earlier, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.