FTSE Russell has placed the Indian and Saudi Arabian government bond markets on the watchlist for possible inclusion in its FTSE Emerging Government Bond Index, the index provider said.

The announcement was included in FTSE Russell’s semi-annual country classification review released on Monday. The market accessibility level of Indian and Saudi Arabian bonds will be considered for reclassification to 1 from 0, FTSE said. Global index users have shown an interest in Indian government securities issued through the Fully Accessibility Route, FTSE said, adding that it will start a version of its FTSE Indian Government Bond Index that tracks these securities in coming weeks.

“We look forward to continued engagement with the Reserve Bank of India to further understand the enhancement program that is currently being undertaken to improve the accessibility of the local market structure for global investors," FTSE said.

The index provider said it has been in talks with index users and regulators in Saudi Arabia to understand the market structure and investors’ experience. It will continue this interaction before its next country classification review in September 2021, it said.