NSE gets Sebi nod to launch corporate bond index futures
India's National Stock Exchange has received a no-objection certificate to introduce futures contracts linked to a corporate bond index. This initiative, pending approval from the Reserve Bank of India, aims to enhance investor risk management. As the corporate bond market grows, driven by corporate funding needs, the current secondary-market liquidity highlights a demand for better hedging tools.
The National Stock Exchange (NSE) has obtained a no-objection certificate from the Securities and Exchange Board of India (SEBI) to introduce futures contracts linked to a corporate bond index, according to a recent announcement. However, approval from the Reserve Bank of India (RBI) is still required before the launch can take place.
If approved, these contracts will offer investors an exchange-traded tool to hedge their exposure to corporate bonds and manage portfolio risk, as stated by NSE. The Indian corporate bond market has expanded significantly in recent years as companies rely more on debt markets for funding, but the market's secondary liquidity is still limited and hedging options are scarce.
At the end of August 2026, the total outstanding corporate bond market reached 61.05 trillion rupees ($636.07 billion), as reported by SEBI. NSE's Chief Business Development Officer, Sriram Krishnan, emphasized that a more developed derivatives market can significantly improve the corporate bond market by facilitating better risk transfer and encouraging greater institutional involvement.
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- SEBI clears corporate bond index futures for NSE thehindubusinessline.com
