Foreign institutional investors (FIIs) on Friday showed interest in buying government and corporate debt with no tenure or lock-in restriction, while there were few takers for the long-term debt. The Securities and Exchange Board of India (Sebi) on Friday conducted an auction to sell unutilised debt limits.
Foreign investors picked up limits worth Rs 13,509 crore as against Rs 30,203 crore on offer. Government and corporate debt with no tenure or lock-in restrictions saw oversubscription. G-sec limits worth Rs 1,264 crore and corporate debt limits worth Rs 4,357 crore were lapped up by FIIs, who paid a premium of five basis points and 0.11 basis points, respectively. Meanwhile, only Rs 3,669 crore of Rs 10,662 crore worth of G-sec limits, with three-year residual maturity, were sold, at a very small premium of 0.001 basis points.
Similarly, of the Rs 13,920-crore of corporate long-term infra debt with one-year lock-in and 15-month residual maturity, only Rs 4,219 crore was sold, at a premium of just 0.0002 basis points.
