Nifty India Municipal Bond Index: NSE launches website for municipal bond index—How will this help you?

Nifty India Municipal Bond Index: The National Stock Exchange (NSE) announced the launch of a dedicated website for municipal bonds on Friday, March 21, to enhance the credibility and visibility of bond markets in the country.

According to the NSE's statement, the website will serve as a centralised hub for market participants, offering comprehensive data on the Indian municipal bonds market, including the issuances, credit ratings, trading volumes, intrinsic yields, and prices with the historical performance of India's first municipal bond index – ‘Nifty India Municipal Bond Index’.

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“This initiative aims to enhance transparency, accessibility, and investor awareness in the municipal bonds market in India. By providing structured information and relevant updates, the initiative is set to strengthen confidence in municipal bonds as a viable investment avenue," said NSE.

Nifty India Municipal Bond Index—How will NSE's website on municipal bonds benefit you?

Key segments of the municipal bond index website which can benefit users:

I. Explore Bonds: Users can screen to filter and analyze outstanding municipal bonds based on parameters like credit rating, maturity, yield, etc. and compare multiple bonds based on these parameters.

II. Municipal Bond Index: The Nifty India Municipal Bond Index allows market participants to track the historical performance of the municipal bonds market and compare it with other relevant bond indices.

III. Market Activity: Users can track aggregate and average daily trading values across municipal bond issuers for different periods.

IV. Resources: This section includes various reports, articles, guidelines, and regulations related to the Municipal Bonds market.

“The launch of a dedicated municipal bond website is a great initiative that will significantly enhance the credibility and visibility of the municipal bonds market in India. This website will help bridge the information gap and attract investors to participate in financing urban development projects," said Ashwani Bhatia, SEBI Whole-Time Member.

Also Read: Municipal bond issuances in India to exceed ₹1,500 crore in FY 2025-26, driven by government push: ICRA

"As municipalities strive to raise funds for infrastructure growth, such measures are crucial in ensuring a robust municipal bonds market. We look forward to leveraging this platform to further strengthen the municipal bonds ecosystem and drive sustainable urban development," added Bhatia.

Municipal bonds are debt securities local governments and agencies issue to fund day-to-day obligations and finance capital projects like highways, roads, and schools. Separately, the NSE said the NSE's ISIN will be activated or unfrozen on Monday, March 24, in view of SEBI's guidelines issued in October 2024.

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Accordingly, starting Monday, NSE shares can be transferred through the DIS (Delivery Instruction Slip) mechanism without following the existing stage 1 /stage 2 process. This will make the share transfer process faster for market shareholders and others.

“The launch of this website marks a significant step towards developing the municipal bonds market in India. By offering structured data and greater market transparency, we empower investors with the knowledge and insights to make informed investment decisions," said Ashishkumar Chauhan, MD & CEO of NSE.

"This initiative perfectly aligns with NSE’s purpose and vision to improve people's financial well-being by fostering a more efficient, liquid, and well-regulated bond market. This initiative will encourage greater participation from institutional and retail investors, ultimately aiding urban infrastructure development," added Chauhan.