India Bond Lending Plan Said to be Stalled by Tax Uncertainties

India’s plan to allow lending and borrowing of sovereign bonds remains stalled by uncertainty on how taxes will be applied, despite infrastructure being in place for more than 18 months, according to people familiar with the matter, complicating an effort to deepen the nation’s $1.3 trillion debt market.

No trades have been executed on a portal set up in July 2024 by the nation’s sovereign debt clearing house, as market players await clarity on whether lenders or borrowers of bonds are responsible for paying goods and services tax, the people said, asking not to be named while discussing private matters. ...