Mumbai, Oct. 1 -- National Stock Exchange of India Limited (NSE) has received a No Objection Certificate (NOC) from the SEBI for the proposed introduction of futures contracts on a Corporate Bond Index.
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 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.
Published by HT Digital Content Services with permission from Millennium Post.