Govt attracts Rs 10,599 crore from FPI

The Dollar Business Bureau

Government debt securities on Tuesday attracted bids worth Rs.10,599 crore from foreign investors compared to Rs.9,358 crore in an online auction.

BSE's e-bidxchange platform on Tuesday conducted a two-hour auction. 34 bids out of 38 were successful.

The debt auction quota allows overseas investors a right to invest in the debt. They can invest up to their limit purchased.

The total investment in government debt (auction) had reached Rs 136,736 crore till July 21, which was 94.96 per cent of the total permitted limit of Rs 1.44 lakh crore, said the depository’s data.

In an online auction undertaken last month, the government debt securities attracted bids worth Rs.7,227 crore from foreign investors compared to Rs.7,264 crore on offer. However, bonds to the tune of Rs 37 crore were left unsubscribed after the auction, the depository data said.

With an aim to boost foreign flow, the government has increased limit for overseas investors in its securities to Rs 1.44 lakh crore from from Rs 1.40 lakh crore from July.

In April, the government had hiked this limit to Rs 1.40 lakh crore from its earlier Rs 1.35 lakh crore.