India Wants To Join Bond Indexes To Spur Demand

India is talking with JP Morgan and others to gain entry to benchmark indexes for emerging market debt in hopes of attracting billions of dollars in investment and may ease some restrictions on foreign inflows in order to do so, sources said.

Finance Minister P. Chidambaram and other officials plan to meet next week in the United States with big fund managers that track such indexes including Pimco, Capital International and Standard Life, one of the sources with direct knowledge of the matter said.

To qualify for entry into the widely-followed JP Morgan Government Bond Index – Emerging Markets, India needs to ease rules on registration, documentation, due diligence rules for the entry of foreign institutional investors (FIIs) in the Indian debt market, besides allowing them to invest more in the government debt, two sources said.

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