Bloomberg Index Services Ltd to Include India’s FAR Bonds into its EM Index from September 2024?

Economy Business

The proposal calls for India FAR bonds to be incorporated into the Bloomberg EM Local Currency Indices in a phased manner during a five-month period beginning in September 2024. After complete inclusion, the Bloomberg Emerging Market ten percent Country Capped Index will have 10% of India's FAR bonds as a cap. Bloomberg Index Services Ltd (BISL) proposed the incorporation of India’s Fully Accessible Route (FAR) bonds into its Emerging Market (EM) Local Currency Index. As per the proposal, the inclusion of Indian government bonds will be a phased implementation plan spanning over 5 months starting in September 2024.


      Each month will add 20% of the bonds’ full market value (100%) falling under the FAR category which does not involve any restrictions on foreign investors. The process will be completed in January 2025.

      Once completely phased into the Bloomberg EM 10% Country Capped Index, India FAR bonds will be fully capped at 10% weight within the index.

      At that point, the Indian Rupee will become the 3rd largest currency component, following the Chinese Renminbi and the South Korean Won, within the Bloomberg EM Local Currency Index.

 

     


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