Monday 23 August 2010

Selection Criteria For BSE Sensex

-    Listed History: The scrip should have a listing history of at least 3 months at BSE. Exception may be considered if full market capitalization of a newly listed company ranks among top 10 in the list of BSE universe.  In case, a company is listed on account of merger / de-merger / amalgamation, minimum listing history would not be required.
-    Trading Frequency: The scrip should have been traded on each and every trading day in the last three months at BSE.  Exceptions can be made for extreme reasons like scrip suspension etc.
-    Final Rank: The scrip should figure in the top 100 companies listed by final rank.  The final rank is arrived by assigning 75% weight age to the rank on the basis of three-month average full market capitalization and 25% weight age to the liquidity rank based on three-month average daily turnover & three-month average impact cost.
-    Market Capitalization weight age: The weight age of each scrip in SENSEX based on three-month average free-float market capitalization should be least 0.5% of the Index.
-    Industry / Sector Representation: Scrip selection would generally take into account a balanced representation of the listed companies in the universal of BSE
-    Track Record: In the opinion of the BSE Index Committee, the company should have an acceptable track record.


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