Futures Contracts on Corporate Bond Indices

On 10th January, 2023, the Securities and Exchange Board of India (SEBI) allowed stock exchanges to introduce futures contracts on corporate bond indices.

  • Regarding this, SEBI had constituted a working group of representatives of National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India Limited(MSEI)tomakerecommendationsonthe matter of ‘Derivatives on Bond Indices.’
  • Based on recommendations, SEBI has been decided to permit stock exchanges to introduce derivative contracts on indices of corporate debt securities rated AA+ and above.

Expected Impact

  • Enhancing Liquidity: The move will help to enhance liquidity in the bond market and also to provide an opportunity to ....
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