Besides developing the index, the two bodies will also work on capacity building on CSR, conduct education and awareness programmes and other activities.
"The CSR Index will be driver for CSR practices for the corporates and an ideal option for investors to put their money for responsible investment. Increasingly, more investors are considering CSR as an important investment theme both globally as well as in domestic markets," BSE chairman R Ramadorai told reporters here.
The proposed CSR Index would assess impact and performance of companies listed on the BSE in CSR activities. It would also look at the performance of companies in their mandatory 2 per cent CSR spend as per the new Companies Act as one of the important criterion.
Performance of the companies in CSR areas would be combined with the market performance of companies for selection of companies and the Index would be sector neutral.
"Transparency is very important and so companies must disclose their spending and the areas of spend on their own websites and MCA website," Corporate Affairs Minister Sachin Pilot said.
He added if there is 100 per cent compliance with the CSR spend norm, about Rs 20,000-22,000 crore will be invested in the social sector by the Indian corporates.