NSE Receives SEBI NOC For Corporate Bond Index Futures; Awaits RBI Approval

Mumbai's National Stock Exchange (NSE) has received a crucial nod from the Securities and Exchange Board of India (SEBI) for its plan to launch futures contracts on a Corporate Bond Index. This move comes as the exchange seeks to bolster the corporate bond market by offering an exchange-traded tool for risk management and price discovery.

Market participants can use these Corporate Bond Index Futures to hedge against potential losses in their bond portfolios and facilitate the growth of a comprehensive derivatives market in India. NSE's Chief Business Development Officer, Sriram Krishnan, emphasized the significance of this SEBI NOC, stating that a well-established derivatives market can bolster the corporate bond market by allowing efficient risk transfer and encouraging institutional involvement. The proposed product will be subject to approval from the Reserve Bank of India (RBI).