SEBI permits stock exchanges to introduce derivative contracts on corporate bond indices
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- Last Updated on 12 January, 2023
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Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/11, Dated 10.01.2023
In order to enhance liquidity in the bond market and also to provide an opportunity to investors to hedge their positions, on the recommendations of the Secondary Market Advisory Committee, the SEBI has decided to permit Stock Exchanges to introduce derivative contracts on indices of corporate debt securities rated AA+ and above. The Stock Exchanges are permitted to launch futures contracts on corporate bond indices.
The stock exchanges desirous of introducing such contracts shall submit a detailed proposal to SEBI for approval, inter alia, providing details relating to the underlying corporate bond index, the index methodology, contract specifications, etc.
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