indices

SEM Bond Index (SEM-BI)

SEM Bond Index (SEM-BI) comprises of rupee and foreign denominated debt instruments that are listed and traded on both the Official Market and the Development & Enterprise Market (DEM) and excludes structured debt products, zero coupon debt instruments and debt instruments that have a maturity of less than one year. The SEM-BI is a market capitalization-based index that includes both local and international debt instruments. The SEM-BI was launched on the 14^th November 2017.

To be eligible for inclusion in SEM-BI, a debt instrument must meet the following requirements:

1. Maturity period of minimum 1 year

2. Make regular coupon payments

3. Zero coupon bond are excluded

The key to the maintenance of the SEM-BI is the adjustment of the divisor. Index maintenance, reflecting new debt issues, early redemption, part redemption and matured debt instruments should not change the level of SEM-BI. Any change to the constituents of SEM-BI that alters the value of the index, while holding debt prices of the constituents constant, will require a divisor adjustment.

In the event that a debt instrument is suspended, the constituent may remain in the SEM-BI, at the price at which it is suspended, until suspension of dealing is removed.