The new indices -- Nifty Bharat Bond index with maturity in April 2025 and Nifty Bharat Bond index with maturity in April 2031 -- will be tracked by the upcoming Bharat Bond exchange traded funds (ETFs).
NSE Indices Ltd, a subsidiary of the National Stock Exchange, on Thursday launched two new indices under the Nifty Bharat Bond index series. The new indices — Nifty Bharat Bond index with maturity in April 2025 and Nifty Bharat Bond index with maturity in April 2031 — will be tracked by the upcoming Bharat Bond exchange traded funds (ETFs).
The Bharat Bond index series follows a unique 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, NSE Indices said in a statement.
In December 2019, NSE Indices had launched the first two indices in the Bharat Bond index series with maturities in April 2023 and April 2030.
“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,” NSE MD and CEO Vikram Limaye said.
The two new indices have a base date of June 30, 2020 and a base value of 1,000. These indices will be rebalanced or reconstituted at the end of every calendar quarter.