State Bank of India (SBI) has launched the FTSE SBI Bond Index series in partnership with global index provider FTSE 100, which it is hoped will give tools to investors from India, the UK and globally to analyse India’s government bond market, and drive growth in this market.
With the launch of this index along with FTSE Russell, our intention is to give people a benchmark on which they can make investment calls. With respect to the Indian government bond market, we didn’t have any international indices on which investors could take a call as to whether they would like to come in and invest.
There is a lot of capital wanting to come into India. But there was not enough depth in terms of the various types of products and what we lacked was a transparent benchmark on which people could rely. We have already approached the capital markets regulator in India to allow us to use this index in order to launch an ETF. We have a few products in mind and we are sure that given that India is a very good destination at this point of time for investors, there will be enough interest and that people will innovate and have products based on this