BSE 100 index methodology to change from June

Leading stock exchange BSE today said all constituents of Large MidCap index will be eligible for inclusion in the BSE 100 index from June onwards.
Currently, all common equities listed on the BSE are eligible.
The index is operated by Asia Index, an equal venture between S&P Dow Jones Indices LLC and the BSE.
The exchange said the companies must have a listing history of at least six months for such inclusion. However, large-sized initial public offerings (IPOs) will require listing history for just one month.
The changes will be applicable in June when the rebalancing of the index takes place, according to a circular posted on the BSE website.

As per the new methodology, stocks must have an annualised traded value of at least Rs 1,000 crore for their inclusion in the BSE 100 index at each semi-annual rebalancing.

The current index constituents with an annualised traded value of Rs 800 crore will be eligible for inclusion.
Besides, the stock should not have more than five non- trading days in the past six months.
Thereafter, the remaining companies would be "ranked based on average daily float-adjusted market capitalisation". The top 80 companies will be selected for index inclusion.
Further, the existing stocks ranked 81 to 120 will be selected in order of highest rank until the target constituent count of 100 is reached.

"If, after this step, the target constituent count is not achieved, non-constituents are selected in order of highest rank until the target constituent count is reached," BSE said.
Besides, the BSE said differential voting right shares (DVRs) will be eligible provided the ordinary share class is part of the index and these securities must pass the liquidity criteria of the index.