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BSE Launches Two New G-Sec Indices for Enhanced Bond Market Access

BSE Index Services has launched two new Government Securities indices focusing on specific maturity ranges. The BSE 4-8 Year G-Sec Index and the BSE 8-13 Year G-Sec Index will track the top three most liquid bonds in their respective categories. These indices are designed to facilitate passive investment strategies like Exchange-Traded Funds and serve as benchmarks for fund portfolios. The launch aims to provide investors with more tools to diversify and enrich their fixed-income investment strategies.

Key Points: BSE Launches New 4-8 Year & 8-13 Year G-Sec Indices

  • Tracks top 3 liquid G-Secs
  • Maturity buckets of 4-8 & 8-13 years
  • Minimum Rs 7,500 Cr outstanding
  • For ETFs & Index Funds
  • Monthly reconstitution
1 min read

BSE Index Services launches two new G-Sec Indices

BSE Index Services introduces two new Government Securities indices to track liquid bonds, aiding ETFs, index funds, and portfolio benchmarking.

"Investors can now access a broader spectrum of market opportunities - BSE Index Services"

Mumbai, February 11

BSE Index Services Pvt Ltd on Wednesday announced the launch of two new G-Sec Indices, namely, BSE 4-8 Year G-Sec Index and BSE 8-13 Year G-Sec Index.

These Indices are reconstituted Monthly, have a base value of 100, with the first value date as 31st August 2015, and are weighted by Turnover and Outstanding Amount.

BSE 4-8 Year G-Sec Index seeks to measure the performance of the top 3 most liquid Government Securities with residual maturity between 4-8 years and have outstanding issuance exceeding Rs 7500 Crore, BSE Index Services said in a statement.

While the BSE 8-13 Year G-Sec Index seeks to measure the performance of the top 3 most liquid Government Securities with residual maturity between 8-13 years and have outstanding issuance exceeding Rs 7,500 Crore, it added.

These new indices can be used for running passive strategies such as ETFs and Index Funds. It can also be used for benchmarking of PMS strategies, MF schemes and fund portfolios.

Investors can now access a broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE's suite of indices.

- ANI

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Reader Comments

P
Priya S
Good to see Indian markets evolving. G-Secs are a solid, low-risk part of any portfolio. Having specific indices for 4-8 and 8-13 year maturities helps in better benchmarking for debt funds. Useful for my SIP planning.
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Rohit P
While more indices are good, I hope this isn't just creating more financial products for the sake of it. The real test is whether fund houses will adopt these for ETFs that actually gather significant AUM. Otherwise, it's just noise.
S
Sarah B
Interesting development. As someone tracking both Indian and global markets, this brings more sophistication to the Indian debt index space. The ₹7500 Cr outstanding filter ensures only meaningful bonds are included. Smart.
K
Karthik V
Bahut accha! This gives clearer signals for medium to long-term government bond yields. My father always preferred FDs, but with tools like these, maybe I can convince him to look at G-Sec funds for better post-tax returns. 👍
M
Meera T
As a finance student, this is a great case study. BSE is directly competing with NSE's indices. More competition should lead to better products for investors. The monthly reconstitution is a good frequency for debt indices.

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