National Stock Exchange is planning to offer derivatives based on its bond indexes, according to people familiar with the matter, as it seeks attract more investors to its platform.
The NSE has already applied to the Securities Exchange Board of India (SEBI) for approval and is aiming to launch the corporate debt product by September, the people said.
India is keen to energise its corporate bond market, which would wean companies off bank lending. But trading volumes remain thin. Offering new products could spur public interest. The NSE says it was the world’s largest derivatives exchange by number of contracts in 2022.
Officials rolled out the necessary regulatory change in January by permitting futures contracts based on bond indexes, as part of an effort to introduce derivatives contracts on debt securities rated AA+ and higher.
The NSE has a number of corporate bond indexes. Those for bonds rated AAA were launched in 2018, according to a fact sheet on its website.
It is also planning futures for government bond indexes, which are due to debut at a later date, the people said.
Both the SEBI and the NSE didn’t comment when contacted by Bloomberg by telephone and email on Monday.
