MCB and Zyfin open Indian bond market to foreign investors

IndiaInternational investors will soon be able to gain access to the Indian sovereign bond market through an exchange-traded fund (ETF). MCB Capital Markets (MCBCM) and Zyfin, a macro-analytics firm based in Mumbai, has launched the MCB India Sovereign Bond ETF. It is designed to facilitate investment into the Indian sovereign bond market, an asset class which has traditionally been difficult for foreign investors to access. This is due to ceilings on foreign holdings and other regulatory processes. India is an attractive market for investors and Zyfin had previously announced its intention to launch a fixed income Indian ETF in Europe last year. India’s sovereign bond market is one of the world’s largest with outstanding issuances in excess of $650 billion (€565.5 billion). India, Asia’s third largest economy, is expected to grow at an average of 7.6% per annum over the 2016-2021 period based on IMF estimates. The ETF will track the performance of the most liquid, fixed rate, Indian rupee denominated bond issued by the Government of India and will be listed on the Stock Exchange of Mauritius. “We are excited to work with MCBCM and offer this attractive investment solution to access the Indian sovereign bond market. ZyFin is committed to offering exposure to difficult to reach but growing emerging markets,” said Sanjay Sachdev, executive chairman of ZyFin. The ETF will start trading on the stock exchange of Mauritius on June 6. ©2016 funds europe

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