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SEM Bond Indices Rules

 
 

In line with a number of initiatives implemented in recent years to improve its services to stakeholders, the SEM is pleased to announce the launching on the 10 November 2017 of the SEM Bond Index (SEM-BI) as part of its universe of market indices.

 

SEM Bond Index (SEM-BI)

SEM Bond Index (SEM-BI) will comprise of rupee and foreign denominated debt instruments that are listed and traded on both the Official Market and the Development & Enterprise Market (DEM) and will exclude Structured Debt Products. The SEM-BI will be a market capitalization based index that will include both local and international debt instruments. The SEM-BI will be launched at 100 points.

 

 

In case no closing price of a newly listed eligible debt security could be determined during the first trading session, the indicative price will be used to calculate its market capitalisation.

 

The conversion rate applied to convert foreign currencies in MUR will be the CDS Conversion Rate (CCR) of the trade day as defined under section 7.7.1 of the CDS Procedures.

 

 


Eligible Shares
 
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

 

Divisor adjustments:

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.

 

 

 

Suspension of Dealing
 
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.