BSE launches two new G-Sec indices to deepen debt market benchmarking
According to a statement by BSE Index Services, the indices are reconstituted monthly, carry a base value of 100, and have August 31, 2015 as the first value date.
Both indices are weighted based on turnover and outstanding amount.The BSE 4-8 Year G-Sec Index is designed to track the performance of the top three most liquid government securities with residual maturity between four and eight years and with outstanding issuance exceeding Rs 7,500 crore.Similarly, the BSE 8-13 Year G-Sec Index measures the performance of the top three most liquid government securities with residual maturity between eight and 13 years and with outstanding issuance exceeding Rs 7,500 crore, the statement said.The newly launched indices are expected to support passive investment strategies such as exchange-traded funds (ETFs) and index funds.
They can also be used as benchmarks for portfolio management services (PMS), mutual fund schemes and fund portfolios.With the addition of these indices, investors can access a broader range of market opportunities, enabling diversification and more structured investment strategies across government bond maturities.
