MUMBAI: Bloomberg Index Services has delayed the inclusion of India’s sovereign bonds in its global bond indices, saying recent market reforms need more time to be tested in practice before a decision can be taken.The index provider said that while India has made meaningful progress in improving access for foreign investors, the changes are still relatively new and require further observation to assess their effectiveness in day-to-day market functioning. It noted that investors are seeking evidence that the reforms translate into a seamless and predictable trading experience.Bloomberg said that the focus remains on how these measures perform under real market conditions, including the ease with which global investors can enter, trade, hedge and exit positions. The firm indicated that operational aspects such as settlement processes, market infrastructure and accessibility will be key to determining readiness for inclusion.The statement underscored the need for stability and consistency in market practices, with investors looking for confidence that liquidity conditions will support large-scale participation.“Feedback received during BISL’s continued engagement indicates that many market participants would like to see these enhancements become more firmly established in day-to-day market practice before a decision is made on index inclusion,” Bloomberg said in a statement. “In addition, a number of respondents indicated they would like to see further evidence that recent market reforms translate into more efficient operational workflows, including improvements to account opening and onboarding processes for foreign investors,” it added.The delay is a negative for bond markets as inclusion would have resulted in fund flows from several passive bond funds globally.