Crisil launches 11 indices for debt market; changes nomenclature for mutual funds classification

Crisil launches 11 indices for debt market; changes nomenclature for mutual funds classification

Rating agency Crisil has launched 11 new debt indices and also announced a change in nomenclature of an existing
index in line with the new norms issued by the Securities and Exchange Board of India (SEBI) for classification
of mutual funds (MFs).

Crisil said that the change of nomenclature has been done for the CRISIL Ultra Short Term Debt Index, which will now be called the CRISIL Low Duration Debt Index corresponding to the ‘Low duration’ bucket. Senior Director of Crisil, Nagarajan Narasimhan said that with SEBI outlining different categories of schemes for eligible securities, maturity profiles, asset classes and nomenclature, the mutual fund Industry is undergoing transition.

“With this launch, we are at 62 indices, and perfectly aligned to the benchmarking requirements of MFs given the change in SEBI guidelines,” he added. Crisil has launched debt indices under duration buckets, credit buckets and low duration buckets.

Here’s the list of Crisil’s new debt indices:

  1. CRISIL CBLO Index
  2. CRISIL Ultra Short Term Debt Index
  3. CRISIL Money Market Index,
  4. CRISIL Medium Term Debt Index
  5. CRISIL Medium To Long Term Debt Index
  6. CRISIL Long Term Debt Index
  7. CRISIL Short Term Corporate Bond Index
  8. CRISIL Medium Term Corporate Bond Index
  9. CRISIL Long Term Corporate Bond Index
  10. CRISIL Corporate Bond Composite Index,
  11. CRISIL Credit Risk Index

The credit agency also said that its research wing will also launch CRISIL Banking and PSU Debt Index, for mapping the ‘banking and PSU fund’ category in coming days.

“The indices will help in smooth transition by serving as the right tool to emulate the risk-return profile and continue to represent more than 95% of the market. Our long-standing experience in fixed income markets and relevant valuation practices, will ensure that we are able to adapt our indices to the changing market dynamics,” Crisil’s Senior Director Jiju Vidyadharan said.

In December, ICRA Management Consulting Services has launched a set of four fixed income indices including one on corporate bonds with an aim of objective analysis and benchmarking of debt portfolios.

Source: Financial Express