BSE Index Services, a subsidiary of the Bombay Stock Exchange, has expanded its fixed-income suite with the launch of two new Government Securities (G-Sec) indices. These benchmarks are designed to facilitate passive investment vehicles, specifically Exchange-Traded Funds (ETFs) and Index Funds. The newly introduced BSE 4-8 Year G-Sec Index and BSE 8-13 Year G-Sec Index focus on the liquid segment of the sovereign bond market. Each index tracks the performance of the top three most liquid government securities within their respective maturity buckets. To ensure institutional viability, each constituent must have an outstanding issuance exceeding 7,500 crore. These indices arrive at a critical time for the Indian debt market. As of February 11, 2026, the benchmark 10-year G-Sec yield has eased slightly to 6.73%, reflecting a rangebound environment as traders anticipate upcoming inflation data. Despite recent supply pressures from large-scale state borrowing, the G-Sec market remains a primary focus for institutional and retail diversification. Passive investing in India is experiencing a significant surge. Total inflows into passive funds, including ETFs and index funds, jumped 50% in January 2026 alone, reaching 39,954 crore. The overall Assets Under Management (AUM) for the passive segment now stands at approximately 14 lakh crore, representing about 17% of the total mutual fund industry. The indices are reconstituted monthly and carry a base value of 100, with historical data tracked back to August 2015. They utilize a weighting system based on both turnover and outstanding amount to ensure they accurately reflect market liquidity. This structure provides a transparent benchmark for Portfolio Management Services (PMS) and mutual fund schemes seeking to offer structured exposure to government debt. For investors, these launches provide a low-cost, rules-based mechanism to gain exposure to sovereign credit. By targeting specific maturity windows—4 to 8 years and 8 to 13 years—the indices allow for more precise duration management. This is particularly relevant as the market navigates a plateau in interest rates, with the Reserve Bank of India maintaining the repo rate at 5.25% in its most recent February 2026 policy meeting. The expansion of the G-Sec index suite is expected to further deepen the debt market. As global and domestic institutional interest in Indian sovereign bonds grows, these benchmarks offer the necessary infrastructure for new passive products that cater to the evolving needs of long-term wealth builders and institutional treasuries.