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NSE Indices launches Nifty Bharat Bond Series

The indices will have a base date of November 29, 2019 and a base value of 1,000.

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Last Updated: Dec 05, 2019, 09.22 PM IST|Original: Dec 05, 2019, 09.22 PM IST
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Mumbai: Index provider NSE Indices on Thursday launched Nifty Bharat Bond Index series, which will measure the performance of a portfolio of ‘AAA’ rated bonds issued by the government-owned entities.

The first two indices within the series are Nifty Bharat Bond Index - April 2023 and Nifty BHARAT Bond Index - April 2030.

Commenting on the launch, Vikram Limaye, MD & CEO of NSE said: “Innovation in financial products is important for the development of markets. NSE has always been at the forefront of financial innovations and takes pride in working with Department of Investment and Public Asset Management (DIPAM), the Government of India and other stakeholders in developing the unique Bharat Bond Index series that will be tracked by India’s maiden corporate bond ETF – Bharat Bond ETF.”

The indices will have a base date of November 29, 2019 and a base value of 1,000. The indices will be rebalanced or reconstituted at the end of every calendar quarter.

“Nifty Bharat Bond Indices are first of its kind following a unique target maturity structure where the index matures in a particular year just like a bond. Each such index captures performance of portfolio of highly rated public sector bonds with ‘AAA’ rating and maturing in a specific year. With high credit quality issuers, very low fund management fees, exchange traded, tax-efficiency and high predictability of returns, the Target Maturity Based ETFs have the potential to change the way retail investors invest in fixed income markets,” said Mukesh Agarwal, CEO - NSE Indices.

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