NSE launches bond indices, working on launching a bond ETF
Mumbai: National Stock Exchange of India (NSE) on Friday launched 75 fixed income indices, including three hybrid ones, to give a boost to bond market trading in India. The indices have been launched by NSE subsidiary India Index Services & Products Limited (IISL).
The Nifty fixed-income index series comprises 72 indices covering assets across the fixed income universe including government securities, treasury-bills, corporate bonds of different credit rating categories, commercial papers, certificates of deposits and overnight rates. It will track historical data across more than 16 years.
“The 75 indices will capture the performance of all segments of fixed income markets and hybrid portfolios. These indices will be crucial in deepening of fixed income markets in India by helping market participants in accurately measuring and efficiently managing risks and returns in fixed income investments,” said Vikram Limaye, managing director and chief executive of NSE.
The indices are calculated on an end-of-day basis. They are expected to act as benchmarks for asset managers looking for reliable metrics that measure risk-return dynamics of fixed income and hybrid portfolios.
NSE is also working with the finance ministry to start bond exchange-traded funds (ETF) to help public sector undertakings (PSU) raise capital through the bond market, Limaye said.