1. BSE Greenex index methodology to change from June

BSE Greenex index methodology to change from June

From June onwards, float-adjusted market valuation for a six-month period will be taken into account for deciding the constituents of S&P BSE Greenex index.

By: | New Delhi | Published: May 9, 2017 7:13 PM
The revised methodology would replace the existing practice of considering the market valuation for a three-month time frame. (Reuters)

From June onwards, float-adjusted market valuation for a six-month period will be taken into account for deciding the constituents of S&P BSE Greenex index. The revised methodology would replace the existing practice of considering the market valuation for a three-month time frame. The index is operated by Asia Index, an equal venture between S&P Dow Jones Indices LLC and BSE. According to the new methodology, “float-adjusted market capitalisation and value traded data used for the rebalancing is based on six-month reference period”.

Free-float methodology market capitalisation is calculated by taking the equity’s price and multiplying it by the number of shares readily available in the market. This method excludes locked-in shares such as those held by insiders and promoters. For liquidity, “six month median annualised value traded” will be used for the rebalancing. Presently, an average of three-month value traded data is used for it.

“Annualised traded value is calculated by taking the median of the monthly medians of daily traded values over the reference period. The annualisation is calculated using 250 trading days in a year,” BSE said in a circular. The changes will be applicable in June when the rebalancing of the S&P BSE Greenex index takes place, it added.

  1. No Comments.

Go to Top