market impact
The initial inclusion can lead to a short-term surge in stock prices as investors adjust their portfolios to match the index. However, the long-term impact will depend on various factors, including the country's economic fundamentals, political stability, and regulatory environment.
risks
Inclusion in global indices also exposes a country to international market forces and risk factors. Economic and political events in other parts of the world can influence the performance of a country's stock market.
REGULATORY CHANGES
Countries seeking inclusion in major indices often need to make regulatory and structural changes to meet the index provider's criteria.
This can have long-term implications for the country's financial markets and regulatory environment.
