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First Nifty India Municipal Bond Index: Great news is coming out for those who have invested money in the bonds of Municipal Corporations of the country. NSE Indices Ltd, a subsidiary of National Stock Exchange Limited (NSE), has launched the country’s first Municipal Bond Index on Friday. It has been named Nifty India Municipal Bond Index. Now tracking and trading municipal bonds will be easier than ever before.
Bonds will get rating
NSE Indices Limited, a branch of NSE, said on Friday that it has launched the country’s first municipal bond. This will make it easier to track the bonds issued by the municipal corporations of India in the Nifty India Municipal Bond Index. The credit rating of the bonds will also go in this index.
28 bonds included in the index
The index has been launched at the Municipal Debt Securities and Exchange Board of India (SEBI) workshop in Bengaluru. At present, 28 Bonds of 10 Municipal Corporations have been included in the Nifty India Municipal Bond Index. The rating of all is of AA category. The weight of the bonds in the index is determined on the basis of their outstanding amount.
Base value kept at Rs 1,000
Price return and coupon return have been added to this index. Its base date has been kept as January 1, 2021 and the base value is Rs 1,000. The index will also be reviewed every three months. Due to this, the Municipal Corporation had to make a lot of efforts to raise money from the market for new projects, but now this work has become easier.
Finance will get big help
Mukesh Agarwal, CEO of NSE Indices says that the municipal bond market has the potential to play an important role in financing the borrowing needs of many municipal corporations in India. The proceeds from the bonds issued by the municipal corporation are used for the expansion of the corporation’s services through infrastructure projects.
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