The auction would be conducted for overseas investors at 'nse-ebid' platform for government debt securities, as per information provided by the bourse.

The total overseas investments in government debt securities through auction route has touched Rs 1,21,315 crore as on September 9, which is 97.5 percent of total permitted limit of Rs 1,24,432 crore.

"Consequently, exchange shall conduct an auction for the allocation of unutilised debt limits on September 11, 2014," NSE said in a circular.

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

In last month's auction conducted by BSE, government bonds had attracted bids worth Rs 3,640 crore, higher than the amount of such securities on offer at Rs 3,208 crore.

In July, market regulator Sebi had tweaked the investment limits for foreign investors in government securities by increasing the threshold for such investors from USD 20 billion to USD 25 billion.

At the same time, the sub-limit for longer time overseas investors such as sovereign funds has been reduced by USD 5 billion as there was less demand in this category. The overall cap remains unchanged at USD 30 billion.

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