INDIA: NSE Indices Launches Two New Target Maturity Indices

Friday January 20 2023

On 20^th January 2023, NSE Indices Limited launched two new target maturity indices namely, Nifty SDL Plus G-Sec Sep 2027 50:50 Index and Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index.

The Nifty SDL Plus G-Sec Sep 2027 50:50 Index follows a target maturity structure with maturity date of September 30^th, 2027. It includes State Development Loans (SDLs) and government securities (G-Secs) maturing during the six-month period ending September 30^th, 2027.

The Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index follows a target maturity structure with maturity date of April 30^th, 2026. It includes State Development Loans (SDLs) and AAA rated bonds issued by PSUs maturing during the six-month period ending April 30^th, 2026.

Both indices have a base date of January 18^th, 2023, and a base value of 1000.

The indices will be reviewed semi-annually. The indices are expected to appeal to investors looking to invest in debt portfolios with target maturity theme. It is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in form of Exchange Traded Funds (ETFs), index funds and structured products.

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