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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.
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