MUMBAI (REUTERS) - India is considering simplifying the allocations of government debt limits to foreign investors, including doing away with the current system of auctions, said a source with direct knowledge of the deliberations between the government and regulators.

Among the measures being considered is making government debt limits available on a first come, first serve basis for foreign investors, instead of the current system of selling these at monthly auctions.

India is considering the measures after foreign funds have been net sellers in government debt over 14 successive sessions, selling over US$3.2 billion (S$3.9 billion).

The sell-off has been a key reason behind the slump in the rupee to record lows this week.

India has taken a slew of measures to attract foreign investors into debt this year, including cutting taxes on interest income and raising the amount of debt they can buy.

The country has already shifted to a first come first serve basis of selling corporate debt limits earlier this year.