Description
BSE announces change in treatment of interest accruals on holidays for BSE Liquid Rate Index, effective September 1, 2025.
Summary
BSE Index Services announces a change in the treatment of interest accruals on holidays for the BSE Liquid Rate Index, effective September 1, 2025. The new methodology will reflect holiday interest accruals on the following working day instead of the prior working day.
Key Points
- Change applies specifically to BSE Liquid Rate Index
- Effective date: September 1, 2025
- Modifies timing of interest accrual calculations for holidays
- Published by BSE Index Services Private Ltd (formerly Asia Index Pvt. Ltd.)
Regulatory Changes
Old Methodology: Interest for holidays (Saturday/Sunday) was combined with regular day interest and included in the index value on the prior working day (Friday).
New Methodology: Interest accruals for holidays will be reflected in the index values on the following working day instead of the prior working day.
Compliance Requirements
- Index users and market participants should adjust their systems and calculations to accommodate the new methodology
- Contact bseindex@bseindia.com for additional queries
Important Dates
- Notice Date: August 1, 2025
- Effective Date: September 1, 2025
Impact Assessment
Market Impact: Medium - affects debt market participants using BSE Liquid Rate Index for pricing and calculations. The change provides more accurate daily interest reflection but requires system adjustments.
Operational Impact: Market participants and systems dependent on this index will need to update their calculation methodologies before the September 1 implementation date.
Impact Justification
Methodology change affects index calculation but limited to specific debt index with clear implementation timeline