FIIs bid for Rs39,000-crore worth of debt in SEBI-led auction
21 Jun 2013
Foreign institutional investors (FIIs) have put in bids worth over Rs39,000 crore ($6.7 billion) to buy government bonds in the largest-ever SEBI-conducted auction for such securities.
The SEBI auction received bids for a total of Rs39,171 crore ($6.7 billion), with a 93 per cent subscription against the grant of Rs42,022 crore ($7.15 billion) investment limit to FIIs in government debt securities.
This leaves an unsubscribed portion of Rs 2,851 crore, which could be auctioned next month with further available quotas.
About 37 FIIs had participated at the auction held yesterday on the BSE.
The encouraging response to the debt auction comes at a time when FIIs have been pulling out from the Indian debt market heavily.
So far in June, FIIs had taken off over Rs21,000 crore from the debt market, after a net inflow of close to Rs25,000 crore in the first five months of 2013.
Indian debt markets had witnessed robust interest from FIIs last year as well, when their net investments stood at close to Rs35,000 crore.
It was the first auction for debt securities since the investment limit for FIIs in government debt was raised to $30 billion from $25 billion previously, earlier this month.
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