Corp bond investment limit oversubscribed, FPIs bid for $2.2bn

Corporate bonds attracted bids worth Rs 13,900 crore (USD 2.2 billion) from foreign investors as against the debt investment limit of Rs 9,475 crore on offer in an auction today, stock exchange data showed.

The investment limit for such securities has been receiving a good response from foreign portfolio investors (FPIs) in the recent past.

The auction was conducted on the NSE's e-bid platform platform from 3.30-5.30 pm, after the market hours.

Of the 61 bids made by FPIs, as many as 39 were declared successful.

Till Thursday, the total investment in the corporate debt category reached Rs 2,15,848 crore, which is 96 per cent of the total permitted threshold of Rs 2,25,323 crore, as per the latest update with depositories.

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 9,475 crore.

The debt auction quota gives overseas investors the right to invest in corporate debt securities up to the limit purchased.

To make trading members accustomed to the bidding platform, the exchange had conducted a mock bidding session on Friday.

In an auction conducted earlier this month, investment limits for corporate bonds had attracted bids to the tune of Rs 15,961 crore by FPIs against Rs 13,756 crore put on offer.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)