MUMBAI (Reuters) - India attracted 48.57 billion rupees ($805.4 million) worth of bids from foreign institutional investors (FIIs) in its auction of government debt limits on Monday, almost double the 25.21 billion rupees on offer, according to three dealers.
The cutoff was 15 basis points, higher than the cut-off of 7.25 bps for the previous 55.16-billion-rupee auction in early July, reflecting strong demand from foreign investors.
These bond auction quotas give foreign investors the right to invest in debt up to the limit bought.
India is selling its FII debt quota in government bonds as 90 percent of the overall limit has been used up.
Currently, around 97.4 percent of the foreign institutional investment (FII) limit in government bonds of the $20 billion cap has been used up, according to National Securities Depository Ltd.
The total FII limit in government debt is $30 billion, out of which $10 billion is restricted for investment by sovereign wealth funds, multi-lateral agencies and other foreign central banks.
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($1 = 60.30 Indian Rupees)
(Reporting by Suvashree Dey Choudhury and Neha Dasgupta; Editing by Rafael Nam)