Siddhar(Berman) investors include indices of India’s bond market in Bloomberg
Bloomberg deferred India’s inclusion in its government bond benchmark index, delaying potential tracking by global bond index funds.
GS3The Indian ExpressGS3Government bond marketForeign portfolio investment (FPI)Global bond index tracking
What happened
Bloomberg deferred India’s inclusion in its government bond benchmark index to a later date.
The deferment changes the expected timing of index-linked passive investment into India’s government securities.
Background and earlier position
Global bond index funds typically track a benchmark index by holding the index’s constituents and weights. When a country’s bonds are included or excluded on a schedule, the holdings and trading activity of index-tracking funds can change around that schedule.
The availability of Indian government bonds to eligible foreign investors also depends on Reserve Bank of India and government measures that affect market access and inclusion criteria used by international participants.
