BSE changes infrastructure index methodology

The constituent of S&P BSE infrastructure index will be decided on the basis of market capitalisation, annualised traded value and turnover ratio from September onwards.
The index is operated by Asia Index -- an equal venture between S&P Dow Jones Indices LLC and BSE.
Currently, there is no minimum threshold in terms of market capitalisation, annualised traded value and turnover ratio for the inclusion of scrips in S&P BSE infrastructure index.
The changes would be applicable in September, when the rebalancing of the index takes place, according to a circular posted on the BSE's website.
As per the new methodology, current index constituents with a market capitalisation of at least Rs 80 crore.

With the changes, "current index constituents with an annualised traded value of at least Rs 16 crore remain eligible for index inclusion provided they meet the other eligibility criteria".
Besides, companies with a turnover ratio of 8 per cent will be eligible for the inclusion in the index, the circular noted.
Generally, turnover ratio refers to the value of shares traded divided by their respective market capitalisation.