Bharat Bond ETFs will track Indices

National Stock Exchange’s (NSE) index services subsidiary, NSE Indices Limited has launched the Nifty BHARAT Bond Index series on 5 Dec 2019.

The Nifty BHARAT Bond Index series measures the performance of portfolio of AAA rated bonds issued by government owned entities maturing in a specific year. Following are the first two indices within Nifty BHARAT

Bond Index series:

Nifty BHARAT Bond Index – April 2023
Nifty BHARAT Bond Index – April 2030

“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), 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,” said Vikram Limaye, MD and CEO, NSE.

Mukesh Agarwal, CEO – NSE Indices, added “The 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.”

The indices have a base date of 29 November 2019 and a base value of Rs.1,000. The indices will be rebalanced/reconstituted at the end of every calendar quarter, said NSE. fiinews.com