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Foreign investors submit bids worth Rs 3,640 cr for Govt bonds

Showing robust interest among foreign investors, an auction of government bonds on Friday attracted bids worth Rs 3,640 crore, higher than the amount of such securities on offer at Rs 3,208 crore.

The auction was held for overseas investors at BSE's ebidXchange for government debt securities, as per the information provided by the bourse. This would be the first auction after Sebi tweaked the investment limits for overseas investors in government securities by increasing the threshold for general investors from $20 billion to $25 billion.

At the end of two-hour auction on Friday evening, total bids received amounted to Rs 3,640 crore. The total number of bids stood at 18 of those were declared successful. The successful bidders have been allocated investment limits for government debt securities worth the targeted amount of Rs 3,208 crore.

On Wednesday, foreign investors pumped in a record Rs 16,072 crore ($2.65 billion) in the debt market. Total overseas investments in government debt securities (through auction route) has already reached Rs 1,21,224 crore.

Foreign investors have been asked by exchanges not to take any fresh investment position in interest rate futures market as foreign investors' exposure to government debt reached 97.2 per cent of permitted limit of $25 billion (Rs 1,24,432 crore).

Overseas investors have been told not to up IRF long positions till the the overall long position of such investors in cash and IRF comes below 85 per cent of existing permissible limit. Last month, Sebi had tweaked the investment cap for foreign investors in G-secs by increasing the threshold for general investors from $20 billion to $25 billion.
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