FTSE Russell Cites Positive Meet With India SEBI On Bond Entry

(Bloomberg) -- FTSE Russell told investors it had very positive meetings with India's securities regulator on access to the nation's bond market, ahead of its decision on including the country's debt in its index, according to a document seen by Bloomberg.

The index provider is consulting investors on whether to add India's so-called Fully Accessible Route bonds to its emerging market gauge. India has been on FTSE's watchlist for potential inclusion since 2021, and in March it said issues around investor registration process, increased regulatory reporting and tax clearance meant the nation was not ready yet. It's due to announce the outcome of its next review Oct. 8.

JPMorgan Chase & Co. added India to its emerging market index in June, leading to a gush of inflows into the nation's bonds. In January, Bloomberg Index Services Ltd., a sister company of Bloomberg News, will start including India's bonds in its offerings. The inclusions will potentially give a further boost to global investment in India.

FTSE Russell's conversations with the Securities & Exchange Board of India are regarding account opening processes for international investors, and the capital markets regulator will engage with the central bank to align equity and fixed-income processes, according to the document.

Spokespeople for India's capital markets regulator and FTSE Russell did not immediately respond to a request for comment.

The SEBI is considering a plan to ease the registration process for foreigners looking to invest in government bonds, a board member with the capital markets regulator said last month. The regulator has also created a dedicated cell for foreign portfolio investors, which has already reached out to over 500 investors.