National Stock Exchange of India (NSE) has secured a No Objection Certificate (NOC) from SEBI for introducing futures contracts on a Corporate Bond Index, a move aimed at enhancing risk management and developing India's corporate bond derivatives market.

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Mumbai: The National Stock Exchange of India (NSE) on Thursday announced it has received a No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI) for its proposal to introduce futures contracts based on a Corporate Bond Index.

Market Impact

The proposed product is designed to offer market participants an exchange-traded instrument for managing corporate bond market risk. It is also expected to facilitate the development of the broader corporate bond derivatives ecosystem in India.

Risk Management and Hedging

Corporate Bond Index Futures are anticipated to complement the growing corporate bond market by providing an additional avenue for risk management, portfolio hedging and price discovery. The product also aims to support market making by enabling participants to manage risk from their corporate bond portfolios.

Regulatory Approvals

The introduction of the product is subject to receiving the necessary approval from the Reserve Bank of India (RBI).

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Strategic Importance

Sriram Krishnan, Chief Business Development Officer at NSE, said the SEBI NOC for Corporate Bond Index Futures is a significant development for India’s fixed income markets. Krishnan added that a developed derivatives ecosystem can strengthen the underlying corporate bond market by enabling efficient risk transfer and supporting institutional participation.

NSE's Role

NSE, which began operations in 1994, was the first exchange in India to implement electronic trading. It operates with a fully integrated business model that includes exchange listings, trading services, clearing and settlement, indices, and market data feeds. NSE was ranked as the world's largest derivatives exchange by trading volume in 2025, according to the Futures Industry Association (FIA) statistics.

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