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Bloomberg delays second time on adding Indian gilts to its global index
The expected $20 billion to $25 billion of potential foreign inflows into gilts remains on hold as investors ask for reforms to be fully embedded in everyday trading workflows.
Bloomberg Index Services has deferred again its decision on adding Indian government bonds to its flagship Bloomberg Global Aggregate Index, citing continued investor requests to see recent market reforms translate into day to day trading practice.
In a Friday press release, BISL said it continued discussions with investors, custodians, trading venues, regulators and other stakeholders after its January consultation process. It noted broad recognition of India’s progress on improving market accessibility, but said feedback remains that operational improvements are not yet consistently embedded across the market.
Investors also want proof that implementation is complete across major investor regions, including smoother operations such as faster account opening and onboarding for foreign investors. BISL pointed to reforms like expanded electronic trading, broader foreign investor access, and removal of withholding and capital gains taxes for eligible foreign investors, which it said improved the post-trade framework and settlement efficiency.
Dealers said index inclusion was expected to draw foreign inflows of about $20 billion to $25 billion into Indian gilts, but BISL added that automated trading capabilities have expanded while implementation is still incomplete across all major regions.