The National Stock Exchange (NSE) will auction government debt securities worth Rs 7,152 crore ($1.2 billion) on Wednesday for overseas investors, whose total investment has crossed 90 per cent of permitted limit.

At the same time, NSE in a circular also asked foreign investors not to increase their positions in interest rate futures (IRF) market as such exposure has also crossed the permitted levels. A similar circular was released by BSE as well.

The decisions come amid a surge in overseas investors interest in Indian bond market.Their total investment in government debt has reached Rs 92,394 crore on June 9, which is 92.82 per cent of total permitted limit of Rs 99,546 crore.

Consequently, NSE will conduct an auction tomorrow for allocation of unutilised investment limits worth Rs 7,152 crore in government debts, the bourse said on Tuesday.

The auction will begin at 1530 hours and close on 1730 hours. A mock bidding session was conducted today to check the system performance.