Mumbai, June 4: The BSE’s index services arm has launched a new 5-year sovereign bond benchmark, aimed at strengthening India’s fixed-income market ecosystem and expanding opportunities for passive investment products.
The new benchmark is designed to provide investors with a transparent and reliable reference point for tracking performance in the government securities segment. It is expected to support the development of passive investment instruments such as bond ETFs and index funds.
Market experts say the introduction of the benchmark will improve liquidity in the sovereign bond market and enhance price discovery, while offering institutional and retail investors better access to government securities through structured investment products.
The initiative is part of broader efforts to deepen India’s debt markets and align them with global best practices, enabling wider participation and improved portfolio diversification options for investors.
Officials noted that the benchmark will also help strengthen the overall financial market infrastructure by encouraging greater participation in passive fixed-income investing.