RBI, CCIL may extend trade time for overseas players
RBI) and domestic clearing authorities could consider requests from global investors for steps such as an extended reporting window for overseas players as inclusion in global bond indices is expected to draw more international funds to the local bond market.
«There will be an increase in bond volumes as we head near the JP Morgan index inclusion in June,» a source aware of the matter said. «There could be a need for authorities to see if it is necessary for foreign trade reporting time or trade time on the Clearing Corporation of India (CCIL) to be extended.»
CCIL, which hosts the trading platform for government bonds, is supervised by the RBI.
An email sent to the central bank remained unanswered until the publication of this report.
Last week, JP Morgan said that India would be included in its Government Bond Index Emerging Markets global index suite starting June 2024, a development that is expected to bring in over $20 billion of stable flows to India's sovereign bond market over the next couple of years.
«Global investors are clearly fine with the Indian bond trading and clearing infrastructure,» said another banking industry executive. «As of now, many funds are working out the modalities of how to function after the index inclusion starts.
