Description

BSE 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 change in the 10 Year benchmark constituent 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 benchmark security.

Key Points

  • BSE India 10 Year Sovereign Bond Index benchmark security being replaced
  • New security: 6.48% GOVT. STOCK 2035 (ISIN: IN0020250091), maturity October 6, 2035
  • Dropped security: 6.33% GOVT. STOCK 2035 (ISIN: IN0020250026), maturity May 5, 2035
  • Change effective from Friday, October 31, 2025
  • Notice issued by BSE Index Services Private Limited on October 28, 2025

Regulatory Changes

No regulatory changes. This is a routine index constituent rebalancing to maintain the 10-year maturity benchmark for the sovereign bond index.

Compliance Requirements

  • Index fund managers tracking BSE India 10 Year Sovereign Bond Index should rebalance portfolios to reflect the new constituent
  • Portfolio adjustments should be completed by the effective date of October 31, 2025
  • Market participants with queries should contact bseindex@bseindia.com

Important Dates

  • October 28, 2025: Notice issued
  • October 31, 2025: Effective date for index constituent change

Impact Assessment

This change will primarily impact institutional investors, index fund managers, and passive investment products tracking the BSE India 10 Year Sovereign Bond Index. The substitution maintains the 10-year benchmark profile while updating to a more current government security with higher coupon rate (6.48% vs 6.33%). Market participants will need to execute trades to rebalance their index-linked portfolios, potentially creating trading volumes in both the incoming and outgoing securities around the effective date.

Impact Justification

Routine index rebalancing affecting fixed income index constituents. Medium impact for index fund managers and sovereign bond investors tracking this benchmark, but low severity as it's a standard operational change.