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India eyes major bond index entry as tax exemptions sweeten appeal

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India eyes major bond index entry as tax exemptions sweeten appeal
India plans to make a renewed pitch for inclusion of its sovereign debt in major global bond gauges, including the Bloomberg Global Aggregate Index, after exempting foreign investors from capital gains and withholding taxes and vastly widening the investable pool of long-dated securities, officials said.

Reserve Bank of India (RBI) and finance ministry officials may also reach out to the Basel-based Bank for International Settlements (BIS) for talks, they said. BIS has been given a special tax-exempt status in the latest rejig. BIS invests significantly in government securities (G-secs) and enjoys tax-free status everywhere.

India to Pitch for Bond Indices Entry AgainETMarkets.com

Latest policy steps seen upping India’s chances; finmin, RBI to tap newly tax-exempt BIS, others

India eyes major bond index entry as tax exemptions sweeten appeal
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India is set to reapply for inclusion in major global bond indices. This follows significant tax exemptions for foreign investors on capital gains and withholding taxes. The country has also expanded its long-dated securities pool. Officials are engaging with global index operators and the Bank for International Settlements. These moves aim to attract substantial foreign investment into Indian government bonds.


With the latest development, it is expected to bring $7-11 billion into India, one of the officials said. “We would be talking to them (global bond index operators)…There is regular engagement in any case,” said a second official, adding that major concerns have been considerably addressed.
Global Relevance
Issues expressed by bond operators earlier include tax benefits, market access and settlement, as per the official cited.


Clarity on trade settlement oversight is also likely to lift the likelihood of India’s inclusion in the Bloomberg Global gauge, which is tracked by multiple bulge-bracket funds worldwide for passive allocations into fixed income instruments. Even before formal inclusion talks are held, India should draw investments of about $5 billion into specified bonds immediately, market participants told ET.
“We expect these tax exemptions to make investing in Indian government bonds compelling for many foreign investors, and also significantly strengthen the case for inclusion in the Bloomberg Global Aggregate Index, especially if these bonds are made eligible for Euroclear settlement,” said Parul Mittal Sinha, head of markets (India and South Asia), Standard Chartered Bank. “We expect incremental inflows of approximately $5 billion in Indian government bonds from FPIs in the immediate future in response to these announcements, aided by tax exemptions and expectations of improved performance of the rupee versus other Asian currencies.”India has been a part of the JP Morgan Global Bond Index-Emerging Markets from June 2024, Bloomberg’s EM Local Currency Government Index from January 2025, and the FTSE Russell Emerging Market Index since last September. However, Bloomberg’s Global Aggregate Bond Index—one of the world’s most widely used indices—deferred its India inclusion in January, signalling further evaluation of key operational and market infrastructure issues. Back then, Bloomberg’s index services had cited infrastructure bottlenecks related to trading workflows and complex fund registration processes to defer its decision to include Indian instruments on its global gauge.

Typically, index inclusion makes global funds tracking those benchmarks to allocate capital proportionately to the country’s weight. This can potentially spur additional annual foreign fund flows worth tens of billions of dollars into India, lower the government’s borrowing cost and deepen the bond market, analysts said. Higher inflows can also help reverse the rupee fall.

Welcome Moves
A raft of government announcements on Friday brightened prospects of inclusion in the remaining major global indices, said analysts.

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Foreign portfolio investors (FPIs) faced a 12.5% long-term capital gains (LTCG) tax on listed shares and bonds held longer than 12 months and a 20% withholding tax on interest earned on G-secs.

The government brought in an ordinance to scrap these levies. It also added G-secs in tenors of 15-, 30- and 40 years, as well as sovereign green bonds, to the list of specified securities under the fully accessible route for FPIs investments. Earlier, the facility was only available for papers with tenors of up to 10 years.

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What Do ETFs In Asia Mean For Investors In Today’s Markets?

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What Do ETFs In Asia Mean For Investors In Today’s Markets?

Financial stock chart hologram over panorama city view of Singapore, business center in Asia. The concept of international transactions. Double exposure.

2d illustrations and photos/iStock via Getty Images

Transcript

Oscar Pulido: ETFs have become more popular in Asia since the global financial crisis. But so far, the conversation has been about access. Now that conversation is shifting because across Asia, ETFs are no longer

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Politics And The Markets 06/08/26

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

This is the forum for daily political discussion on Seeking Alpha. A new version is published every market day.

Please don’t leave political comments on other articles or posts on the site.

The comments below are not regulated with the same rigor as the rest of the site, and this is an ‘enter at your own risk’ area as discussion can get very heated. If you can’t stand the heat… you know what they say…

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We remove comments under the following categories:

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Regardless of which side of the political divide you find yourself, please be courteous and don’t direct abuse at other users.

For any issue with regards to comments please email us at : moderation@seekingalpha.com.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Offtake, supply deals for Mineral Resources-backed iron pellet plant

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Offtake, supply deals for Mineral Resources-backed iron pellet plant

A British company which wants to build an iron ore processor in Europe has struck preliminary deals to supply enough material to fill its capacity more than four times over.

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India Inc hikes prices, shrinks packs as Iran war squeezes margins

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India Inc hikes prices, shrinks packs as Iran war squeezes margins


India Inc hikes prices, shrinks packs as Iran war squeezes margins

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China’s global e-commerce push stalls as Iran war lifts costs, dampens demand

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China’s global e-commerce push stalls as Iran war lifts costs, dampens demand


China’s global e-commerce push stalls as Iran war lifts costs, dampens demand

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Judge calls wharfie time in Steve Wyatt's battle with MinRes over haulage tech

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Judge calls wharfie time in Steve Wyatt's battle with MinRes over haulage tech

A WA Supreme Court judge has warned that Steve Wyatt’s showdown with Mineral Resources could be delayed until 2028 after the estranged co-founder again changed his lawyers.

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China’s Moonshot AI seeks $30 billion valuation in new funding round- Bloomberg

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China’s Moonshot AI seeks $30 billion valuation in new funding round- Bloomberg

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Ipsos quick count shows statistical tie in Peru’s presidential race

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Ipsos quick count shows statistical tie in Peru’s presidential race


Ipsos quick count shows statistical tie in Peru’s presidential race

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Western Australians recognised in King’s Birthday honours

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Western Australians recognised in King's Birthday honours

Ninety-five Western Australians have been honoured for their services and commitment within the 2026 King’s Birthday Honours list.

Nationally, 948 people were acknowledged, with federal governor general Sam Mostyn highlighting the significance of their achievements.

“Our honours system recognises outstanding people who contribute so much to Australia,” she said.

“In our communities, in workplaces and across the country, recipients have made an exceptional contribution to Australia.

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“Just like those honoured across the past 50 years, their service and achievement in the community and public service, industry and academia, science, the arts and sport help shape our nation.

“The work of our award recipients, and the contributions of the thousands of Australians who have been nominated and recognised throughout the history of our honours system, is something we can take great pride in celebrating.” 

Officer of the Order of Australia

Former state treasurer turned businessman Ben Wyatt was one of four acknowledged in this category.

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Mr Wyatt, who was in politics between 2006 and 2021, held a series of ministerial positions.

Post-politics, Mr Wyatt holds a series of board roles – including as chair of Crown Perth, along with Woodside Energy, Rio Tinto and the West Coast Eagles. 

A passionate advocate for Indigenous issues and culture, Mr Wyatt recently attended the Kimberley Economic Forum, where he said there was scope for native title bodies to fast-track project approvals if council-based decision making protocols were allocated to them instead. 

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Other recipients were professors David Blair, Timothy Davis and William Morgan. 

Member of the Order of Australia

Recently appointed Western Australian Local Government Association president – and the City of Stirling’s longest serving mayor – Mark Irwin received a gong for services to the local government, community and surf life saving. 

Mr Irwin began as a councillor in 2015 and has served as mayor since 2017.

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WALGA chief executive Nick Sloan said Mr Irwin’s input made a difference to the overall local government landscape.

“Through his extensive public service over more than a decade at the City of Stirling and his current role as WALGA president, Mark Irwin strongly represents the association’s 139 member local government’s and empowers them to deliver better outcomes for their communities.”

A handful of ex state Labor ministers were acknowledged for their services to politics – including David Templeman, Bob Kucera and Mick Murray.

Former Nationals leader and pioneer behind “Royalties for Regions”, Brendon Grylls, was also honoured. 

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Recently appointed WA Cricket Foundation chair Tim Ungar was highlighted for his commitment to philanthropy and creative arts, as was Bradley Woods (AHA president) for his efforts in the hospitality space. 

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Tourism Dips but Exports Rise Amid Conflict

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Tourism Dips but Exports Rise Amid Conflict



Thailand Economy April Update: Tourism Dips but Exports Rise Amid Conflict































https://www.bot.or.th/en/news-and-media/news/news-20260529.html

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