Daijiworld Media Network - Mumbai

Mumbai, Jan 13: Bloomberg Index Services Ltd. (BISL) has postponed the inclusion of Indian government bonds in its widely tracked Global Aggregate Index, citing the need for further assessment of operational and market infrastructure-related issues.

In a statement issued on Tuesday, the index provider said that while most respondents were optimistic about the long-term growth and prospects of India’s government bond market, several participants raised concerns that require deeper review before inclusion in a flagship global investment-grade index.

Among the key issues highlighted were the lack of fully automated trading workflows, delays linked to settlement and repatriation timelines due to post-trade tax processes, and the complexity and duration of fund registration procedures.

“In light of this feedback, BISL intends to keep the review of Indian government bonds for the Bloomberg Global Aggregate Index open and ongoing,” the statement said, adding that it will continue engaging with index users, market participants, custodians, regulators and other stakeholders to identify potential improvements in market infrastructure and post-trade processes.

BISL further noted that it plans to provide an update on the review by mid-2026, at which point it will communicate the next steps regarding possible inclusion of Indian government bonds in the index.

Respondents also pointed out that while the identified challenges are relatively common for emerging-market investors and acceptable within BISL’s emerging-market indices, the Global Aggregate Index serves a broader and more operationally diverse investor base, warranting higher standards of market accessibility and efficiency.