NSE Indices launches India’s first Municipal Bond Index

Category : Business and economics Published on: February 27 2023

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The NSE’s index services subsidiary, NSE Indices Limited has launched India’s first ever Municipal Bond Index at a SEBI workshop on Municipal Debt Securities at Bengaluru.
The Nifty India Municipal Bond Index tracks the performance of municipal bonds issued by Indian municipal corporations across maturities and having investment grade credit rating.
NSE’s bond index will have 28 municipal bonds, which were issued by 10 issuers, as its constituents. The bonds in the index have a credit rating of AA category.
There is a thriving municipal bond market in India that has seen a three-fold rise in fund raising since 2017.
The index, which will be reviewed quarterly, is computed using the total return methodology including price return and coupon return. The index has a base date of January 1, 2021, and a base value of 1,000.