Govt bonds short of the crease, FPIs bid for Rs 7,227-cr

Government debt securities attracted bids worth Rs 7,227 crore from foreign investors as against Rs 7,264 crore on offer in an online auction.

The auction was conducted on NSE's e-bid platform from 1530 hrs to 1730 hrs yesterday after the close of market hours. At the end of the two-hour auction, all the 34 bids were declared successful.

Foreign portfolio investors (FPIs) have bid for investment limits in government debt securities worth Rs 7,227 crore as against Rs 7,264 crore on offer, exchange data showed. Bonds worth Rs 37 crore were left unsubscribed.

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

According to depositories data, the total investment in government debt (auction) has reached Rs 1,36,736 crore till July 21, which was 94.96 per cent of total permitted limit of Rs 1.44 lakh crore.

Consequently, the exchange had decided to conduct an auction for the allocation of unutilised debt limits.

In an auction conducted on July 5, bids worth Rs 8,419 crore came in as against Rs 8,114 crore on offer during an online bidding.

To boost foreign flow, limit for overseas investors in central government securities has increased from Rs 1.4 lakh crore to Rs 1.44 lakh crore from July 5.

This limit was hiked to Rs 1.4 lakh crore from April 4. Prior to that, the limit was Rs 1.35 lakh crore.