The long wait of foreign investors investing in the Indian market may end soon. Regulator RBI may soon give them a wonderful festive gift. RBI and Clearing Corporation of India are considering increasing trading hours for foreign investors. It is being told that it may get regulatory approval soon.
Investors’ demand may increase
Foreign investors have been trying to increase their trading time in the Indian market for a long time. Are demanding. According to an ET report, the inclusion of the Indian market in global bond indices may increase the participation of foreign investors in the local bond market. For this reason, the Reserve Bank and CCIL are considering increasing the reporting window for foreign investors.
Expectation to increase this much investment
Let us tell you that in an important development, JP Morgan Has announced to include Indian market in its index. JPMorgan had said last week that it would include India in its Government Bond Index Emerging Markets. India will get a place in this index from June next year. After this development, it is expected that in the coming years, there may be a flow of more than 20 billion dollars in India’s sovereign bond market.
Can find a place in these indices
< p>At the same time, after this step of JP Morgan, the hope has also increased that the Indian market may get a place in other indices also. For example, after JP Morgan’s move, the Indian market can now find a place in the Bloomberg Global Aggregate Index and FTSE Emerging Markets Government Bond Index. If this happens, the participation of foreign investors in the Indian bond market will increase significantly.
Now is the time for trading
CCIL hosts the trading platform for government bonds and It is monitored by the Reserve Bank. At present, CCIL’s Negotiated Dealing System-Order Matching or NDS-OM platform, on which government bonds are traded, works from 9 am to 5 pm. In case of a deal between foreign investors, i.e. when both the seller and buyer are foreign investors, then in such cases separate reporting time is available from 5 pm to 8 pm.
For FPIs. This separate arrangement means that after the closure of the domestic market i.e. after 5 pm, FPIs can only make deals among themselves and can give information about the deals to CCIL till 8 pm. As is now expected, if FPI participation increases then the demand for increasing trading hours may increase. The main reason for this is the time difference between India and other countries. This is why regulators are considering extension of trading hours for FPIs.
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