While Indian Prime Minister Narendra Modi is visiting UK this week, meet his British counterpart, signs deals on financial cooperation, defense and give a speech to UK parliament, London stock exchange in the meantime preparing to launch first ETF on Indian corporate bonds on 19th November this year.
The ETF is being set up by UK's Sun Global Investments and India's Zyfin Funds.
The fund will offer investors exposure to a basket of bonds issued by Indian state owned enterprises, such as Indian railways, Indian Rural electrification corporations.
Analysts' believe given India's recent drive for fast reforms and high growth better than China is likely to attract large fund flows into the ETFs, which in turn will benefit the companies in India. ETF's are in great demand these days. So far this year, $108.5 billion has poured into bond ETF assets, compared to $74.23 billion in whole 2014.
