BSE Index Services, a subsidiary of BSE, has introduced the BSE India 5-Year Sovereign Bond Index to monitor the performance of India’s five-year government securities. This index, starting with a base value of 100 from April 27, 2018, will undergo monthly reconstitution. The aim is to enhance passive investment options in India’s fixed-income sector, catering to ETFs, index funds, and other passive investment strategies.
The newly launched index can also function as a reference point for portfolio management services, mutual fund schemes, and institutional investment portfolios. By adding this benchmark, BSE intends to diversify its index offerings, granting investors access to a broader array of market-linked investment products. BSE Index Services, previously known as Asia Index Pvt Ltd, manages various indices across asset classes as a wholly owned subsidiary of BSE.
In a move to bolster passive and factor-based investing opportunities, BSE Index Services recently unveiled the BSE SmallCap 500 Index and four factor-based indices like Quality, Momentum, Low Volatility, and Enhanced Value variants. These initiatives align with the exchange’s strategy to expand benchmark options for ETFs, index funds, and institutional investors seeking diversified investment instruments. The company has also announced periodic reconstitution of its government bond indices, including the BSE 4–8 Year G-Sec Index and the BSE India 10-Year Sovereign Bond Index, underscoring its commitment to broadening fixed-income benchmark offerings.
