NSE Gets SEBI Nod for Corporate Bond Index Futures

The National Stock Exchange of India received a No Objection Certificate from the Securities and Exchange Board of India on 1 October 2026 to launch futures contracts linked to a corporate bond index. The proposed product remains subject to approval from the Reserve Bank of India and will enter India’s exchange-traded fixed-income derivatives segment after the required clearances.

Corporate Bond Market in India

Corporate bonds are debt securities issued by companies to raise funds from investors for business operations, refinancing, or expansion. In India, the outstanding value of corporate bonds stood at 61.05 trillion rupees, or 636.07 billion US dollars, as of August 2026.

Corporate Bond Index Futures

Corporate bond index futures are derivative contracts whose value is linked to a corporate bond index. Such contracts are used for price discovery, portfolio hedging, and risk management in fixed-income markets.

Exchange-traded derivatives are standardised contracts traded on recognised stock exchanges, and they include futures and options. Fixed-income derivatives are financial instruments derived from debt securities, interest rates, or bond indices.

Regulatory Framework for Launch

The Securities and Exchange Board of India regulates securities markets in India under the Securities and Exchange Board of India Act, 1992. The Reserve Bank of India regulates monetary policy and has a role in approving certain debt-market and interest-rate related instruments.

Sriram Krishnan is the Chief Business Development Officer at NSE. NSE has linked the proposed product to the expansion of exchange-traded risk-management instruments in India’s fixed-income market.

Important Facts for Exams

• The National Stock Exchange of India was established in 1992 and is one of India’s leading stock exchanges.
• The Securities and Exchange Board of India was given statutory powers through the SEBI Act, 1992.
• Corporate bonds are part of the broader debt market, which also includes government securities and treasury bills.
• Futures contracts are standardised derivative instruments that derive value from an underlying asset or index.

The launch of corporate bond index futures requires Reserve Bank of India approval before trading can begin. India’s corporate bond market is measured by outstanding issuance, which reached 61.05 trillion rupees in August 2026.