Sebi auctions $9.34 bn worth government bonds for FIIS

In signs of imminent revival of overseas interest in government securities, an auction for investment limits in such bonds was over-subscribed by FIIs with bids worth a record USD 10.4 billion pouring in. The auction was conducted by capital market regulator Sebi on the stock exchange platform for FII investment limits in government debt securities worth USD 9.34 billion (Rs 58,264 core) and it received bids worth USD 10.4 billion (Rs 64,908 crore). This is the biggest ever auction for such bonds and exceeds the previous record of Rs 42,022 crore, auctioned two months ago on June 20, and negates the prevailing concerns in markets with regard to foreign investments. This comes in the backdrop of FIIs having turned net sellers for over two and half months now in debt market after huge net inflows in the first 5 months. As per auction details, as many as 40 bids were received and 39 were declared successful with allocation of investment limits for debt securities worth Rs 58,264 crore. The robust response to Sebi auction comes at a time when concerns are being raised about huge outflows of foreign funds and weakness in domestic markets and the overall economy.