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Govt bonds oversubscribed as FPIs bid for $1 billion

LiveMint logoLiveMint 14-08-2017 PTI

New Delhi: Government debt securities on Monday saw robust response from foreign investors, attracting bids worth over $1 billion as against $854 million on offer.

The online auction was conducted on National Stock Exchange’s (NSE) e-bid platform from 3:30pm to 5:30pm after the market closed.

Foreign portfolio investors (FPIs) bid for investment limits in government debt securities worth Rs7,116 crore ($1.1 billion) as against Rs5,481 crore ($854 million) on offer, the exchange data showed.

Besides, investment limits for corporate bonds were auctioned, but the data for it could not be ascertained immediately.

The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased. A mock bidding session was conducted on last Friday to check the system’s performance in this regard.

Till 10 August, total investment in government debt reached Rs1,82,219 crore—97.08% of total permitted limit of Rs1,87,700 crore—while the same in corporate bond stood at Rs2,40,963 crore (98.62% of the total permitted limit of Rs2,44,323 crore).

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

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