For Quick Alerts
For Daily Alerts

RBI Working On Including Govt Bonds In Global Indices

By Staff

The Reserve Bank of India (RBI) is in discussions with some institutions and efforts are being made in including government bonds in global indices as quickly as possible. The development is hoped to attract higher foreign inflows and bring in large passive investments from overseas to make more domestic capital available for industries.

RBI Working On Including Govt Bonds In Global Indices

Talking about it in an interview, RBI governor Shaktikanta Das told PTI, "That is work in progress. We have had our discussions with some institutions which maintain these global index...not possible to spell out a timeline, but it is a work in progress. Our effort will be to see that it is taken forward as quickly as possible. I don't want to give a timeline."

Earlier this month at the Budget presentation, Finance Minister Nirmala Sitharaman said, "Certain specified categories of Government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well."

The specified securities, which will be listed on the indices, will not have a lock-in requirement. Globally, there are some large institutional investors that track these indices, such as Bloomberg Barclays Emerging Market Bond index, for positional decisions on sovereign papers.

Further, with regard to the health of the shadow banking sector, Governor Das said RBI has been monitoring the top 50 NBFCs (non-banking financial companies) very closely, in fact, much more closely than anybody can imagine from outside.

Read more about: rbi government bonds
Story first published: Saturday, February 22, 2020, 13:12 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more