Indian bonds will continue to remain on the FTSE Fixed Income Country Classification watch list for a potential inclusion in the FTSE Emerging Markets Government Bond Index, an official statement said. No decision has been made on the inclusion yet.
"India will remain on the watch list fo the potential reclassification of its market accessibility level from 0 to 1 and consideration for inclusion in the FTSE Emerging Markets Government Bond Index (EMGBI).
India was added to the FTSE Fixed Income Country Classification watch list in March 2021.
The FTSE statement said that the areas for improvement in the Indian government bond market highlighted by international investors remain largely unchanged from the previous March 2023 review.
Some of the issues highlighted include the efficiency of Foreign Portfolio Investor (FPI) registration, as well as operational issues related to the settlement cycle, trade matching and tax clearance processes.
"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," the statement added.
JPMorgan CEO Jamie Dimon expects inflows worth $25 billion into India post the inclusion of these bonds on the index. He said this in an exclusive conversation with
CNBC-TV18's Shereen Bhan.
You can read more about that here.(Edited by : Hormaz Fatakia)
First Published: Sept 29, 2023 6:43 AM IST