Indian government bonds will become part of the JPMorgan Chase & Co.'s emerging markets bond index, the US investment bank said in a statement. The inclusion will be in the Global Bond Index- Emerging Markets index suite, it said.
The local bonds could hold a maximum weight of 10% in the index, the bank said.
The inclusion will happen in a staggered manner over 10 months between June 28, 2024 and March 31, 2025, it said. Currently 23 Indian government bonds with a combined notional value of over $30 billion are eligible for inclusion.
The inclusion comes after months of speculation over Indian bonds getting place in the broader global indices. Such an inclusion will allow greater flows of foreign capital into the domestic bond market.
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