Description

BSE Index Services announces change in 10 Year benchmark for BSE India 10 Year Sovereign Bond Index, replacing 6.33% GOVT. STOCK 2035 with 6.48% GOVT. STOCK 2035 effective October 31, 2025.

Summary

BSE Index Services Private Limited has announced a benchmark change for the BSE India 10 Year Sovereign Bond Index, effective October 31, 2025. The index will drop the 6.33% Government Stock 2035 (maturing May 5, 2035) and add the 6.48% Government Stock 2035 (maturing October 6, 2035) as the new 10-year benchmark security.

Key Points

  • BSE India 10 Year Sovereign Bond Index benchmark is being updated
  • New benchmark: 6.48% GOVT. STOCK 2035 (ISIN: IN0020250091), maturing October 6, 2035
  • Removed benchmark: 6.33% GOVT. STOCK 2035 (ISIN: IN0020250026), maturing May 5, 2035
  • Change reflects periodic rebalancing to maintain 10-year duration target
  • Notice issued by BSE Index Services Private Limited (formerly Asia Index Pvt. Ltd.)

Regulatory Changes

No regulatory changes. This is a routine index maintenance activity to ensure the BSE India 10 Year Sovereign Bond Index continues to track securities with approximately 10 years to maturity.

Compliance Requirements

  • Index fund managers tracking BSE India 10 Year Sovereign Bond Index must rebalance portfolios
  • Portfolio adjustments should be completed by effective date to maintain index alignment
  • Investors and fund managers should contact bseindex@bseindia.com for additional queries

Important Dates

  • Notice Date: October 28, 2025
  • Effective Date: October 31, 2025 (Friday)
  • New Benchmark Maturity: October 6, 2035
  • Old Benchmark Maturity: May 5, 2035

Impact Assessment

Market Impact: Medium - affects fixed income index funds and sovereign bond portfolios tracking this benchmark.

Operational Impact: Index-tracking funds will need to execute trades to swap out the old benchmark security for the new one, potentially involving significant transaction volumes depending on assets under management.

Investment Impact: The yield difference between the two securities (6.33% vs 6.48%) and slight maturity date difference may result in minor performance variations for index-tracking products. Passive investors in index funds tracking this benchmark will experience automatic rebalancing without action required.

Impact Justification

Index benchmark changes affect fixed income index tracking and portfolio rebalancing but have limited broader market impact. Relevant primarily for index fund managers and sovereign bond investors.