Introduction of Bond Index
Summary
SEBI directs stock exchanges to construct and disseminate Bond Indices for both corporate and Government of India securities. Exchanges are permitted to adopt global computation models or develop their own methodologies for these indices. The introduction of derivatives on these indices is reserved for future consideration based on experience gained.
Text
Exchanges shall construct a Bond Index (both corporate & GOI) and disseminate the same.
The Exchanges are free to decide whether they want to adopt any of the Bond Index computation models available globally or may like to develop their own model for computation of Bond Index.
The detailed methodology for computing the Bond Index shall be disseminated by the Exchange for the benefit of the market participants and investors.
Based on experience gained and awareness generated, derivatives on Bond Index shall be considered for introduction in due course of time.
Source: SecMarx — Introduction of Bond Index. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.