Bloomberg to Consider India’s Fully Accessible Route (FAR) Bonds in Emerging Market Local Currency Index

Bloomberg to Consider India's Fully Accessible Route (FAR) Bonds in Emerging Market Local Currency Index

VoM News Desk | January 8, 2024 | 10:22 PM IST | Breaking News | Follow on Google News

Bloomberg to Consider India’s Fully Accessible Route (FAR) Bonds in Emerging Market Local Currency Index/Pixabay

Bloomberg to Consider India’s Fully Accessible Route (FAR) Bonds in Emerging Market Local Currency Index

The Bloomberg Index Services has proposed including India’s Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market (EM) Local Currency Index starting from September 2024. This prospective development could potentially inject billions of dollars into India’s sovereign debt market. It coincides with Indian government bonds slated to join JPMorgan’s Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024.

Bloomberg Index Services Limited (BISL) initiated a consultation process seeking feedback on the proposed inclusion of India’s Fully Accessible Route bonds in the Bloomberg EM Local Currency Index. These FAR bonds are freely accessible to foreign investors without any restrictions.

BISL clarified that India would remain excluded from the Bloomberg Global Aggregate and related indices while monitoring market developments.

JPMorgan’s addition of India to the emerging-market index follows an earlier announcement to incorporate Indian government bonds into its renowned emerging market debt index, the GBI-EM index. Commencing on June 28, 2024, this inclusion will gradually increase India’s index weighting by 1% over ten months, ultimately reaching the maximum 10% index weighting expectation for India.

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