RBI chief says in talks on modalities for inclusion in global bond indexes

MUMBAI (Reuters) - The Reserve Bank of India said it has to see to what extent the cap on investments in debt for foreign institutional investors can be removed for the country's inclusion in global indexes for emerging market debt, its chief Raghuram Rajan said on Tuesday.

"We have the ability to be somewhat flexible at this point, has to be a meeting of minds," he said, referring to the negotiations with various bodies.

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.

For inclusion in certain global indexes, the country is required to allow foreigners unfettered access to debt markets.

(Reporting by Suvashree; Dey Choudhury; Writing by Archana Narayanan; Editing by Prateek Chatterjee)