Bharat Bond ETF would be the first corporate bond exchange-traded fund (ETF) in the country.
Leading stock exchange BSE on Tuesday said it will conduct a two-day mock trading session for Bharat Bond ETF, which will invest in government debt securities, on Wednesday and Thursday. Bharat Bond ETF would be the first corporate bond exchange-traded fund (ETF) in the country. In a circular, BSE said the exchange plans “to conduct a mock session for Bharat Bond ETF- April 2030 on Wednesday, December 11 and Thursday, December 12”.
The mock trading would be conducted between 10 am and 3 pm. The National Stock Exchange (NSE) on Thursday launched Nifty Bharat Bond Index series, which will track a portfolio of AAA-rated bonds issued by government entities. The first two indices in the series are for April 2023 and April 2030. On Wednesday, the Cabinet approved the launch of ETF for bonds to create an additional source of funding for central public sector companies and state-owned financial institutions.
Sources said NHAI, NHPC, NTPC, REC, PFC and Nuclear Power Corporation of India Ltd would be in the index. ETF will be a basket of bonds issued by state firms or any government organisation, and will be tradable on exchange. The unit size will be of Rs 1,000, which will allow small investors to invest.