Bloomberg Index Services has deferred for the second time in six months its decision on including Indian government bonds, known as G-Secs, in the Bloomberg Global Aggregate Bond Index. India had taken concrete steps to meet the requirements, notably by eliminating a tax on foreign bond investors in June. BISL cited operational concerns: slow settlement processes, cumbersome tax administration, and insufficient trading automation. The inclusion would have represented an initial weighting of approximately 0.7% in the index, with projected cumulative inflows estimated between $25 billion and $27 billion by fiscal year 2028. Indian bond yields rose following the deferral announcement.
Source: Read the original article
