The proposed product seeks to provide market participants with an exchange-traded instrument for managing corporate bond market risk and facilitate development of the broader corporate bond derivatives ecosystem in India.
Corporate Bond Index Futures are expected to complement the growing corporate bond market by providing an additional avenue for risk management, portfolio hedging and price discovery. The product can also support the development of market making by enabling participants to manage market risk arising from their corporate bond portfolios. The introduction of the product is subject to requisite approval from the Reserve Bank of India (RBI).
The proposed initiative is aligned with NSE’s continued efforts towards deepening India’s fixed income markets and expanding the suite of exchange-traded risk-management products available to market participants.
Sriram Krishnan, our Chief Business Development Officer said, “The SEBI NOC for Corporate Bond Index Futures marks an important milestone in the evolution of India’s fixed income markets. A well-developed derivatives ecosystem can play an important role in strengthening the underlying corporate bond market by enabling more efficient risk transfer and supporting greater institutional participation. This initiative reflects NSE’s continued commitment to building deeper, more liquid and resilient debt markets in India.”
