BSE Index Services, a wholly owned subsidiary of BSE, on Thursday announced the launch of a new benchmark index — the BSE India 5-Year Sovereign Bond Index — aimed at tracking the performance of India’s benchmark five-year government securities.
The newly launched benchmark has a base value of 100 and a first value date of April 27, 2018. It will be reconstituted on a monthly basis, according to the company.
The launch is expected to expand passive investment opportunities in India’s fixed-income segment, with the index designed for use in exchange-traded funds (ETFs), index funds and other passive investment strategies.
The index can also serve as a benchmark for portfolio management services (PMS), mutual fund schemes and institutional investment portfolios.
With the addition of the new bond benchmark, BSE aims to broaden its index offerings and provide investors with access to a wider range of market-linked investment products.
BSE Index Services (formerly known as Asia Index Pvt Ltd) is responsible for calculating, publishing and maintaining a broad range of indices across asset classes.
The company is a wholly owned subsidiary of BSE, Asia’s oldest stock exchange and home to the benchmark Sensex index.
Earlier in March, the company launched the BSE SmallCap 500 Index along with four factor-based indices built on the same universe, including Quality, Momentum, Low Volatility and Enhanced Value variants, aimed at strengthening passive and factor-based investing opportunities.
These launches reflect the exchange’s increasing focus on broadening benchmark offerings for exchange-traded funds (ETFs), index funds and institutional investors seeking diversified investment products.
Recently, BSE Index Services announced periodic reconstitution of its government bond indices, including the BSE 4–8 Year G-Sec Index and the BSE India 10-Year Sovereign Bond Index, reflecting its continued focus on expanding fixed-income benchmark offerings.
