Reuters Market Eye - Foreign investors have exhausted 82.47 percent of the available limit of $20 billion in government bonds, according to data published by National Securities Depository Ltd on Thursday.
The surge in utilisation has triggered expectations of a further increase in the cap on foreign investment in government bonds.
Currently, 820.91 billion rupees worth of government bonds have been purchased and only 174.55 billion rupees remain under the $20 billion limit, according to the data.
The government had raised the foreign institutional investment (FII) limit in government bonds by $5 billion to a total of $30 billion last year.
The government debt limit is allocated under two heads - $20 billion for all FIIs and $10 billion for investors like sovereign wealth funds, pension funds, insurance funds and foreign central banks.
($1 = 59.3450 rupees)
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(Reporting by Suvashree Choudhury)