NSE's index services subsidiary, NSE Indices Limited today launched two new constant maturity indices namely - Nifty Financial Services 3 to 6 Months Debt Index and Nifty Financial Services 9 to 12 Months Debt Index.
Nifty Financial Services 3 to 6 Months Debt Index seeks to measure the performance of portfolio of Commercial Papers (CPs) & Certificates of Deposit (CDs) with long term credit rating of AAA, issued by entities from the financial services sector with residual maturity of 3 to 6 months. Nifty Financial
Services 9 to 12 Months Debt Index seeks to measure the performance of portfolio of Commercial Papers (CPs), Certificates of Deposit (CDs) & corporate bond securities with long term credit rating of AAA, issued by entities from the financial services sector with residual maturity of 9 to 12 months.
Both indices have a base date of June 12, 2006 and base value of 1000. Nifty Financial Services 3 to 6 Months Debt Index will be reviewed quarterly and Nifty Financial Services 9 to 12 Months Debt Index will be reviewed semi-annually. Securities selected in each index are given equal weight as of the base date/review date.
The new indices are expected to appeal to investors looking to invest in debt portfolios with shorter duration. These indices are expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.