Friday, Apr 19, 2024 | Last Update : 08:55 PM IST
BSE says Sensex 50 should have derivative contract
The index is operated by Asia Index an equal venture between S&P Dow Jones and BSE.
New Delhi: Leading bourse BSE today said all constituents of Sensex 50 should have a derivative contract for inclusion in the index from June onwards. S&P BSE Sensex 50 index was launched in December 2016 to measure the performance of the 50 largest BSE-listed firms.
Its constituents are selected from S&P BSE Large MidCap index and are weighted based on their float-adjusted market capitalisation. As per the new methodology, "all constituents should have a derivative contract to be eligible for the index", the exchange said in a circular.
The index is operated by Asia Index -- an equal venture between S&P Dow Jones Indices LLC and BSE. Currently, the individual float weight of any share class of a company, not linked to derivatives trading, cannot exceed 5 per cent of Sensex 50 index. The aggregate float weight of the index constituents, not linked to derivatives trading, cannot exceed 10 per cent.
