BSE to introduce smart beta indices by 2015-end

Kolkata, Oct 6 (IANS) The Bombay Stock Exchange (BSE) in collaboration with S&P Dow Jones Indices will introduce three smart beta (factor-based) and a 1-2 thematic indices by 2015-end, an official said here on Tuesday.

“Work is under progress to introduce one-two thematic indices and at least three smart beta (factor-based) indices by December-end this year,” Koel Ghosh, head of business development at Asia Index, told media persons here in an interactive session.

Asia Index is a 50:50 joint venture between Asia’s oldest bourse – the BSE – and S&P Dow Jones Indices.

GHosh said the criteria for a company to qualify for the factor-based indices will be based on its profitability, liquidity and turnover. Other factors may also play a role in the selection process.

The joint-venture has already launched five thematic indices — the manufacturing, infrastructure, PSU (Public Sector Undertakings), Shariah-complaint and CPSE (Central Public Sector Enterprises) index categories.

Thematic Indices are used to capture the impacts of various broad investment themes while the smart beta or the factor-based index will be based on the free-float mechanism.

The official said introducing equal-weighted indices is also in the pipeline.

Besides, she is hopeful that with investments poised to pour into the capital market from the Employees’ Provident Fund Organisation, exchange-traded fundA(ETF) will get a boost.

ETF is an open-end investment fund traded on stock exchanges, much like stocks.

“As on July this year, the Indian ETF industry had 50 ETFs with 50 listings and assets of two billion dollars from 16 providers on two bourses,” she said

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here