NSE arm launches two new indices under Bharat Bond series

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Published: July 3, 2020 4:01 AM

The second tranche of the Bharat Bond ETF, which tracks bonds issued by central public sector enterprises and is managed by Edelweiss AMC, is looking to raise up to Rs 14,000 crore.

The new indices — Nifty BHARAT Bond Index – April 2025 and Nifty Bharat Bond Index – April 2031– will have a base date of June 30, 2020 .

NSE Indices, a subsidiary of the National Stock Exchange (NSE), on Thursday launched two more indices under the Nifty Bharat Bond index series, having maturities in April 2025 and April 2031.

The new indices — Nifty BHARAT Bond Index – April 2025 and Nifty Bharat Bond Index – April 2031– will have a base date of June 30, 2020 and base value of 1000. The indices will be rebalanced or reconstituted at the end of every calendar quarter.

The Bharat Bond Index series follows a target maturity date structure wherein each index in the series measures the performance of a portfolio of AAA-rated bonds issued by government-owned entities maturing in a specific year.

The second tranche of the Bharat Bond ETF, which tracks bonds issued by central public sector enterprises and is managed by Edelweiss AMC, is looking to raise up to Rs 14,000 crore. It will remain open for subscription between July 14 and 17, and will track the new indices. The first tranche launched in December 2019 had raised as much as Rs 12,400 crore.

Vikram Limaye, MD & CEO, NSE, said the Bharat Bond ETFs, tracking the Nifty BHARAT Bond Index series, have been successful in increasing retail participation in corporate bond market with more than 50,000 retail investors participating in the first two ETFs launched in December 2019.

Mukesh Agarwal, CEO, NSE Indices, said the upcoming BHARAT Bond ETFs tracking the newly launched Nifty Bharat Bond Indices will provide more investment choices to fixed-income investors.

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