2 hrs ago
NSE Wins SEBI Approval for Corporate Bond Index Futures
The National Stock Exchange of India wants to offer a new type of investment contract.
These contracts will track an index of corporate bonds.
SEBI has given the exchange its approval to introduce them.
The product could help investors protect their portfolios from changing bond prices.
It may also help investors discover fair prices more easily.
Market makers could use the contracts to manage risks.
The plan still needs approval from the Reserve Bank of India.
NSE said the product could help make India’s corporate bond market deeper and more active.
The National Stock Exchange of India received SEBI approval to introduce Corporate Bond Index Futures.
The contracts are intended to provide risk management, portfolio hedging and price discovery tools.
NSE said the product could help market makers manage risks from corporate bond portfolios.
The initiative still requires requisite approval from the Reserve Bank of India.
NSE shares settled at Rs 1,763.05 on Wednesday, according to the report.
- Who
- The National Stock Exchange of India, with approval from the Securities and Exchange Board of India, is proposing the product.
- What
- Corporate Bond Index Futures would be introduced as an exchange-traded risk-management product.
- Where
- The initiative concerns India’s fixed income and corporate bond markets.
- When
- The approval and share-price update were reported on Wednesday; the article gives no calendar date for the approval.
- Why
- The contracts are intended to support risk management, portfolio hedging, price discovery, market making and greater institutional participation.
Key facts
- Exchange
- National Stock Exchange of India (NSE)
- Regulatory approval
- Securities and Exchange Board of India approval has been received.
- Pending approval
- Requisite approval from the Reserve Bank of India is still required.
- Proposed product
- Corporate Bond Index Futures
- Expected uses
- Risk management, portfolio hedging and price discovery
- Market objective
- Deepening India’s fixed income markets and supporting more liquid, resilient debt markets
- NSE closing price
- Rs 1,763.05 on Wednesday
Quotes
Sriram Krishnan
NSE’s Chief Business Development Officer
“The SEBI NOC for Corporate Bond Index Futures marks an important milestone in the evolution of India’s fixed income markets.”
businesstoday.in
Sources
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