The proposed product will provide market participants with an exchange-traded instrument to manage corporate bond market risk and support the development of India’s corporate bond derivatives market.
Corporate Bond Index Futures are expected to provide an additional avenue for risk management, portfolio hedging and price discovery. The product could also support market making by enabling participants to manage risks arising from their corporate bond portfolios.
The launch of the product is subject to the requisite approval from the Reserve Bank of India (RBI).
The initiative is part of NSE’s efforts to deepen India’s fixed-income markets and expand the range of exchange-traded risk-management products available to market participants.
Sriram Krishnan, Chief Business Development Officer at NSE, said the SEBI NOC marks an important milestone for India’s fixed-income markets. He said a well-developed derivatives ecosystem can strengthen the underlying corporate bond market by enabling more efficient risk transfer and supporting greater institutional participation.