Bloomberg index inclusion to add $3-4 billion inflows

MUMBAI : Financial news and data provider Bloomberg on Tuesday said it will add a set of Indian government bonds to its widely-tracked emerging market index, a development that could potentially attract investment flows of $3-4 billion beginning next year.

Global investors with passive investment strategies buy stocks and bonds featuring in global indices, and Bloomberg’s addition of Indian bonds promises to attract investments in them.

Indian bonds available under the fully accessible route (FAR) will be included in Bloomberg’s Emerging Market (EM) Local Currency Government Index and related indices, beginning 31 January, 2025. Bloomberg’s index rebalancing comes about six months after JP Morgan decided to include India’s FAR securities in its GBI-EM Global index suite from 28 June 2024, a move expected to attract $22-25 billion over time.

“Indian regulators have thoughtfully implemented a number of enhancements and innovations in recent years – like the FAR programme, extended trading hours and more flexibility with margin requirements –

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