FTSE Russell retains India on watchlist for inclusion in bond index
Informist, Friday, Sep 29, 2023
NEW DELHI – India's sovereign bonds will not be included in the bond index for emerging market economies in the present round, and will remain on the watchlist for inclusion, global index provider FTSE Russell said today after its annual country classification review.
"India will remain on the FTSE Fixed Income Country Classification Watch List for the potential reclassification of its Market Accessibility Level from 0 to 1, and consideration for inclusion in the FTSE Emerging Markets Government Bond Index," FTSSE Russell said in a release.
The decision comes after JPMorgan last week included Indian government bonds in its Global Bond Index – Emerging Markets.
FTSE Russell said that it will continue to engage with its index users and Indian market authorities regarding ongoing market structure reforms.
"FTSE Russell will continue its valuable dialogue with the Reserve Bank of India and seek feedback from market participants on their practical experiences of the evolution of the market structure," it said.
The index provider said that the areas of improvement in the Indian government bond market structure include the efficiency of foreign portfolio investor registration, as well as operational issues related to the settlement cycle, trade matching, and tax clearance process, which is largely unchanged from the previous review in March.
India was placed on the watchlist for the first time following FTSE Russell's review in March 2021. End