The Securities and Exchange Board of India (SEBI) will hold an auction on Monday for grant of investment limits to foreign investors in government debt securities worth over Rs. 23,000 crore.

At the auction, to be held on the National Stock Exchange on July 22, foreign institutional investors (FIIs) would be able to bid for investment limits of Rs.23,661 crore ($3.97 billion) in government bonds.

Robust interest

The auction follows a robust interest shown by FIIs for sale of government debt bond investment limits to the tune of Rs.42,000 crore last month.

The encouraging response last month came at a time when FIIs have been pulling out of Indian debt market.

Since the beginning of June, FIIs had made a net outflow of over Rs.44,331 crore from debt securities, after a net inflow of about Rs.25,000 crore in the first five months of this year.

Debt markets

Indian debt markets had witnessed robust interest from FIIs last year as well, when their net investments stood at close to Rs.35,000 crore.

The bidding would be held on a designated electronic exchange platform of NSE between 3.30 p.m. and 5.30 p.m., the bourse said in a circular.

It would be the second auction for debt securities since a hike in the investment limits for FIIs in government debt to $30 billion, from $25 billion previously, last month.