Foreign institutional investors (FIIs) put in bids worth over Rs.39,000 crore ($6.7 billion) to buy government bonds, with a 93 per cent subscription in the largest-ever Securities and Exchange Board of India (SEBI)-conducted auction for such securities.

The encouraging response, at the auction held on Thursday on the BSE, came at a time when foreign institutional investors have been pulling out from Indian debt market heavily.

So far in June, FIIs had made a net outflow of over Rs.21,000 crore from the debt securities, after a net inflow of close to Rs.25,000 crore in the first five months of 2013.

As against the grant of investment limits to FIIs in government debt securities at Rs.42,022 crore ($7.15 billion) in Thursday’s auction, the bids received from FIIs totalled Rs.39,171 crore ($6.7 billion).

This leaves an unsubscribed portion of Rs.2,851 crore, which could be auctioned next month with further available quotas.

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