MSCI warns India, four other emerging markets against restrictive policies

Says could lead to a downgrade in market classification

Global index provider MSCI has warned India and four other emerging markets (EMs) against restrictive policies, and reiterated that any move that impedes overseas investment could lead to a downgrade.

“Low ratings continue to persist for the availability of investment instruments in the market accessibility criteria for Brazil, China (A shares), India, Korea, and Turkey. Global market participants expect that stock exchanges should not directly or indirectly restrict the availability of investment instruments domestically or globally,” MSCI said in a release, where it stripped Argentina of its EM status owing to the country’s continued capital controls.

MSCI’s popular indices such as the