May 29, 2024 05:50 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Rajkot fire: Gaming zone co-owner among those killed, police confirms today | Eyeing more seats in Bengal, PM Modi holds mega roadshow in north Kolkata | 'I am not against minorities but won't divide the country based on religion': PM Modi | Delhi LG VK Saxena takes swipe at Kejriwal over children's hospital fire, orders anti-corruption probe | Punjab minister Balkar Singh's obscene video surfaces, BJP calls AAP 'Anti Aurat Party'
JPMorgan says India index inclusion on track, most clients ready: Bloomberg report
Photo Courtesy: Wallpaper Cave

JPMorgan says India index inclusion on track, most clients ready: Bloomberg report

| @indiablooms | 10 May 2024, 01:04 pm

Mumbai/IBNS: JPMorgan Chase & Co. is on track to include India in its emerging market debt index from June with most of its clients ready to trade, Bloomberg reported quoting Gloria Kim, the firm’s global head of index research.

“Based on the annual Index Governance Consultation process, market feedback so far has been largely positive, with the majority of our index clients already set up to trade in the IGB market,” the report quoted JPMorgan Managing Director Gloria Kim.

Acknowledging the reforms made by the government, Kim said, "As always, there are still teething issues when entering a new market, however we have found these to be related mostly to the operational readiness and flexibility of counterparties and custodians rather than barriers to entry."

The difficulty in setting up trade in India due to an elaborate documentation process has been one reason why foreign investors have been apprehensive about the nation’s entry into global indexes, according to the Bloomberg report.

JPMorgan, last September, said it would include India in its emerging market bond index, where it will have a maximum weight of 10 percent, the report said.

The American financial institution estimates foreign inflows will be between $20 billion and $25 billion, assuming an index-neutral position, Gloria Kim said.

Kim added that JPMorgan estimated its emerging-market bond gauge currently has $216 billion of assets under management.

“We have seen in the past that assets tracking the index are relatively sticky in nature and generally remain consistent,” Gloria Kim was quoted by Bloomberg as saying.

According to the Bloomberg report, the process of inclusion is set to commence on June 28, 2024, and will span over 10 months.

JPMorgan stated that during this period, there will be incremental increases of 1 percent in India's index weighting, ultimately reaching the maximum allocation of 10 percent, the report added.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.