NSE gets SEBI's no objection certificate to introduce Corporate Bond Index Futures

Representational Image. File pic.

The National Stock Exchange of India (NSE) on Thursday said it received a no-objection certificate (NOC) from market regulator Securities and Exchange Board of India (SEBI) to introduce futures contracts on a Corporate Bond Index.

The proposed product will give market participants an exchange-traded instrument to manage corporate bond market risk and help develop India's corporate bond derivatives ecosystem, NSE said in a statement.

Corporate Bond Index Futures are expected to offer an additional avenue for risk management, portfolio hedging and price discovery, while supporting market making by enabling participants to manage risks arising from their corporate bond portfolios.

The launch of the product, however, is subject to requisite approval from the Reserve Bank of India (RBI), the statement noted.

The initiative is part of NSE's efforts to deepen India's fixed-income markets and expand exchange-traded risk-management products, said Sriram Krishnan, Chief Business Development Officer of NSE.

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