The National Stock Exchange (NSE) is considering offering derivatives based on its bond indexes to attract more investors to its platform, Bloomberg reported Monday citing sources.
The report said the NSE aims to launch the corporate debt product by September this year as the stock exchange has already applied to the Securities Exchange Board of India (Sebi) for approval.
The NSE officials rolled out the necessary regulatory change in January by permitting futures contracts based on bond indexes, as part of an effort to introduce derivatives contracts on debt securities rated AA and higher, the report added.
The exchange has a number of corporate bond indexes. Those for bonds rated AAA were launched in 2018, according its website.
The stock exchange is also planning futures for government bond indexes, which are due to debut at a later date, reported Bloomberg citing sources
India is keen to energize its corporate bond market, which would wean companies off bank lending. But trading volumes remain thin. Offering new products could spur public interest. The NSE says it was the world’s largest derivatives exchange by number of contracts in 2022.
Separately, NSE International Exchange (NSE IX) today unveiled a new brand identity of GIFT Nifty as a part of the full-scale transition of SGX Nifty to Gift Nifty from July 3.
The new identity of Gift Nifty is aligned with the National Stock Exchange's (NSE) flagship index Nifty 50, the bourse said in a statement.
The unveiling comes following the recent announcement of full-scale operations of NSE IX-SGX Connect to start from July 3. The move would provide an opportunity for international investors to participate in India's growth story to access Nifty products through NSE IX at GIFT City in Gujarat.
“To begin with, market participants can access Gift Nifty 50, Gift Nifty Bank, Gift Nifty Financial Services and Gift Nifty IT derivative contracts on NSE IX and gradually other indices will be rolled out under Gift Nifty suite. These contracts are accessible for almost 21 hours, which overlaps Asia, Europe, and US trading hours”, the bourse said.
