New Delhi India wants global bond index operators to consider local settlement of their government securities if they are included in its index, a government official said on Thursday.
Media reports last week said JP Morgan had initiated fresh consultations with investors about adding India to its emerging market index, rekindling hopes of an imminent listing of the country’s securities.
The Indian government began considering listing its debt on a global index in 2019 and is in discussions with JP Morgan and Bloomberg-Barclays, while also talking to Euroclear about clearing and settlement.
A global bond index listing plan was widely expected to be announced earlier this year, government officials have said, but the government’s stance on the treatment of capital gains has hindered progress in talks with index operators. .
“Discussions are on with some of the top index operators and we are happy that they are understanding our point,” the official said on Thursday.
Bonds listed in global indices are usually settled outside country borders through international settlement platforms such as Euroclear.
“Why can’t these shackles be resolved within our borders?” Said the officer, who did not wish to be named.
The official did not comment on when the index list might be announced, but said the listing may not happen immediately.
The finance ministry did not immediately respond to emails and messages seeking comment.
India has the largest bond market among emerging market economies, with outstanding debt of over $800 billion.
India’s long-standing ban on overseas purchases of bonds has kept it out of the top benchmark used by global wealth managers.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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