Asia Index Private Ltd, a subsidiary of BSE, on Monday announced the launch of a new index – BSE Select IPO – to measure the performance of newly listed stocks either through a public issue or a spin-off/demerger process.
Stocks are included in the index based on three main criteria – broad market investing, capital purchases and a minimum listing history of three months, Asia Index said in a statement.
This new index can be used to implement passive strategies like ETFs and Index Funds and to measure the performance of new companies across major sectors in India.
Also, it can be used for portfolio management strategies (PMS), mutual fund schemes and fund portfolios.
“2024 has been an incredible year for new listings with India emerging among the top 3 markets globally in terms of funds raised and companies listed. The strong showing of new listings is expected to continue as companies look to unlock value and plan next. Growth phase to match growing opportunities will come with India’s status as a fast-growing major economy,” said Ashutosh Singh, Managing Director and Chief Executive Officer of Asia Index.
Asia Index said the weight of stocks is up to 5 percent to underweight the index. The index will be rebuilt and rebalanced every quarter.
