JP Morgan decides against including India's govt bonds in EM index

JP Morgan has opted not to include India's government bonds in one of its flagship emerging market indexes after investors cited ongoing problems with capital controls, custody and settlement and other operational snags.

India has one of the largest local currency government bond markets among emerging-market economies with over $800 billion in debt stock. But long-held restrictions on foreign buying of its bonds have kept it out of the top benchmarks used by global money managers.

With the added need to finance a Covid surge in debt issuance, the government had hoped its "Fully Accessible Route" (FAR) plan announced in March, that