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 ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Economy Watch