NSE Zero Coupon Yield Curve (ZCYC)

With NSEIL's strong focus on debt market segment and the long felt need to create standardized market practices, NSEIL has embarked upon developing products that will be used by the market participants to address themselves to issues relating to this market segment.

In its continuing effort to innovate, the Exchange has developed a 'Zero Coupon Yield Curve' (ZCYC) that will help in valuation of sovereign securities across all maturities irrespective of its liquidity. It aims to create uniform valuation standards in the market. The product has been developed keeping in mind the requirements of the banking industry, financial institutions, mutual funds, insurance companies, etc. that have substantial investment in sovereign papers. NSE ZCYC aims to help in improving Asset Liability Management of institutions with realistic valuations of portfolio of sovereign papers. It has been developed keeping in mind the emergence of a scientific forward curve for the market that will be useful in developing derivative products and STRIPS in the emerging scenario.

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