Mumbai, June 4: BSE Index Services, a subsidiary of the Bombay Stock Exchange, announced the launch of the new BSE India 5-Year Sovereign Bond Index on Thursday. This index will track government securities with a maturity of five years.
The BSE Index Services stated that the new benchmark will have a base value of 100, with its first base value date set for April 27, 2018. It will undergo monthly rebalancing.
The introduction of this index is expected to enhance passive investment opportunities in India’s fixed-income segment. It has been designed with exchange-traded funds, index funds, and other passive investment strategies in mind.
Additionally, this index can serve as a benchmark for Portfolio Management Services (PMS), mutual fund schemes, and institutional investment portfolios.
With the inclusion of the new bond benchmark, BSE aims to expand its index offerings and provide investors with access to a wide range of market-linked investment products.
BSE Index Services, formerly known as Asia Index Private Limited, is responsible for the calculation, publication, and maintenance of indices across various asset classes. It is a wholly-owned subsidiary of BSE, one of Asia’s oldest stock exchanges.
Earlier in March, the company launched the BSE Smallcap 500 Index along with four other factor-based indices, which include Quality, Momentum, Low Volatility, and Enhanced Value variants. These initiatives aim to strengthen passive and factor-based investment opportunities.
These launches reflect BSE’s increasing focus on broadening benchmark options for exchange-traded funds (ETFs), index funds, and institutional investors seeking diverse investment products.
Recently, BSE Index Services also announced periodic rebalancing for its government bond indices, including the BSE 4-8 Year G-Sec Index and the BSE India 10-Year Sovereign Bond Index, highlighting its ongoing commitment to expanding fixed-income benchmark options.
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