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Index Inclusion Buzz Lures Foreign Funds Back Into Indian Bonds

Index Inclusion Buzz Lures Foreign Funds Back Into Indian Bonds
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Covid impact: Sebi may give overseas roadshow a miss, again

The Securities and Exchange Board of India (Sebi) is unlikely to embark on any overseas roadshows this year to meet foreign portfolio investors (FPIs) in the backdrop of the surge in coronavirus variants that has made it difficult to resume normal life in several countries. The regulator typically meets overseas investors in the US and UK in the first half of a financial year, and had opted for a virtual meet last year too. Given that there are still restrictions in several countries on how many people can come together, Sebi might find it more prudent to address the investors virtually, said a person familiar with the matter.

Inclusion of G-Secs in global indices likely by next fiscal: DEA Secy

The government and RBI are working on inclusion of Indian sovereign bonds in global bond indices and it may become a reality by the second half of the next fiscal, Economic Affairs Secretary Tarun Bajaj said on Wednesday. The move would attract higher foreign flows as many overseas funds are mandated to track global indices. It will also help bring in large passive investments from overseas, as a result of which more domestic capital would be available for industry as crowding out would be reduced. We are trying for the first half itself but if not in first half, it can maximum stretch to second half, he told PTI in an interview when asked about the timeline for inclusion of government bonds in global indices.

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