BSE launches All Derivative Stocks Index to track F&O-linked BSE 500 stocks

BSE’s wholly owned subsidiary BSE Index Services on Tuesday announced the launch of the ‘BSE All Derivative Stocks Index’, which is designed to track the performance of derivatives-eligible stocks within the BSE 500 universe.The index aims to reflect the evolving depth and liquidity of the Indian equity derivatives market by capturing the performance of BSE 500 components linked to derivatives trading. The components of the BSE All Derivative Stocks Index are weighted based on a combination of float-adjusted market capitalization and momentum score, with individual stock weighting limited to a maximum of 10%.

The index has a base value of 1,000, with June 23, 2014 as the first value date, and is reconstituted semi-annually in June and December.Commenting on the launch, Ashutosh Singh, Managing Director and CEO, BSE Index Services Pvt. Ltd., said the new index represents a structural shift in benchmark construction in India. “By dynamically representing the entire derivatives-eligible equity universe, the index reflects the evolving depth, liquidity and maturity of India’s capital markets. It provides market participants with a transparent, rules-based benchmark that evolves with the derivatives ecosystem,” he said.

The BSE All Derivative Stocks Index can be used for a range of passive investment strategies, including exchange traded funds (ETFs) and index funds. It can also serve as a benchmark for portfolio management services (PMS), mutual funds and other investment portfolios, giving investors access to a broader spectrum of market opportunities.

BSE Index Services Pvt Ltd, formerly known as Asia Index Pvt Ltd, is responsible for calculating, publishing and maintaining a wide range of stock indices. BSE is Asia’s oldest stock exchange and home to the benchmark Sensex index.

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