NSE Indices Limited on February 24 launched India’s first-ever Municipal Bond Index, Nifty India Municipal Bond Index at a SEBI workshop on Municipal Debt Securities in Bengaluru.
Key points
- The Nifty India Municipal Bond Index tracks the performance of municipal bonds issued by Indian municipal corporations across maturities and having investment-grade credit rating.
- The index includes municipal bonds issued as per the Securities Exchange Board of India Issue and Listing of Municipal Debt Securities Regulations, 2015.
- Presently, the index has 28 municipal bonds issued by 10 issuers all having credit rating in the AA rating category.
- The index is computed using the total return methodology including price return and coupon return.
- Indian municipal bond market has seen a resurgence of issuances after the SEBI Issue and Listing of Municipal Debt Securities Regulations, 2015 came into effect and a renewed emphasis on municipal finance by policymakers.
