Asia Index today announced a new methodology for BSE's benchmark index Sensex, BSE 200 and BSE 500 over the treatment of multiple share classes for their inclusion in the indices. These indices are operated by Asia Index, an equal venture between S&P Dow Jones Indices LLC and the BSE. As per the new methodology, Differential Voting Right Shares (DVRs) would be eligible for index inclusion provided that the ordinary share class is part of the index and DVR shares outstanding are greater than 10 per cent of the ordinary shares outstanding. In addition, the DVRs must individually satisfy all other eligibility criteria. "DVRs satisfying the index eligibility criteria are aggregated with the company's common stock and index construction is done based on the aggregated company data," Asia Index said. The changes will be implemented from June onwards, it added. Earlier, S&P Dow Jones Indices LLC had proposed a new methodology for these three indices over the treatment of multiple share classes for their inclusion in the indices and had sought sought comments from the members of the investment community regarding the proposal till May 17. S&P Dow Jones Indices, a division of S&P Global, provides investable and benchmark indices to the financial markets.
Asia Index changes methodology for BSE indices
Press Trust of India |