Bloomberg defers inclusion of Indian government bonds in Global Aggregate Index: Report

Bloomberg Index Services Limited (BISL) has reportedly deferred the potential inclusion of Indian government bonds in the Bloomberg Global Aggregate Index, citing operational and market-infrastructure considerations that require further evaluation.

In its consultation, BISL said it sees a broad support for the long-term trajectory of the Indian government bond market and recognition of progress such as improvements in market accessibility and the implementation of the Fully Accessible Route (FAR). However, it said, respondents highlighted gaps including the lack of fully automated trading workflows, settlement and repatriation timelines associated with post-trade tax processes, and the complexity of fund registration procedures. BISL said these issues warrant further assessment before bonds can be included in a flagship global investment-grade index.

"A number of respondents highlighted important operational and market-infrastructure considerations that merit further evaluation before inclusion in a flagship global investment grade index. These considerations include, among others, the current lack of fully automated trading workflows, settlement and repatriation timelines associated with post-trade tax processes, and the complexity and duration of fund registration procedures," it said, as per a screenshot shared by CNBC-TV18 in a post on X. Business Today could not independently verify the report.

BISL stated it intends to keep the review of Indian government bonds open and ongoing, continuing to engage with index users, market participants, custodians, regulators, and relevant authorities to explore possible efficiencies in market infrastructure and post-trade processes.

The index provider plans to provide a further update by mid-2026, at which time it will communicate next steps regarding potential inclusion. BISL also noted that any future inclusion would follow standard procedures, with at least one year between the announcement and commencement of index inclusion, and may be implemented on a phased basis to ensure orderly market adjustment.

BISL said it remains committed to maintaining indices that are transparent, investable, and representative of the evolving global bond market. At 11.13 am, 10-year bond yields stood at 6.635 per cent.