The Hindu Business Line : FTSE includes 13 cos in India indices

FTSE, the London-based independent global index company, has made several changes in the FTSE India All World and FTSE India Global SmallCap indices from today.

As part of the changes, FTSE has included several companies in the indices and for several of the existing constituents it has increased the weightage. FTSE has included 13 companies in the indices and increased the weightage for existing nine companies.

The companies that have been included in the index are: SBI, ICICI Bank, Tata Motors, Satyam Computers, Hero Honda, Zee Telefilms, Sun Pharmaceuticals, Gujarat Ambuja Cement, ACC, Container Corporation of India, Moser-Baer, Asian Paints and NIIT.

The companies in which the investability weights have been increased are: Reliance Industries (from 30 per cent to 49 per cent), HLL (30 pc to 40 pc), Infosys (7 pc to 49 pc), Ranbaxy (7 pc to 30 pc), HDFC (14 pc to 74 pc), Dr Reddy's Laboratories (30 pc to 49 pc), HDFC Bank (30 pc to 49 pc), i-flex Solutions (50 pc to 60 pc) and Punjab Tractors (30 pc to 50 pc).

On the rationale for these changes, FTSE said it discovered that the free float for certain Indian companies within its indices have been incorrectly stated since March. This has taken place following a misinterpretation of the foreign ownership limits and the foreign institutional investor holdings (as monitored by the Reserve Bank of India).

It said as a result of the revision of free float, some previously excluded companies are now eligible for inclusion, having risen above the minimum free float level, and some existing companies in the index will have their free float increased.

"In order to ensure that the correct free float numbers are applied, as governed by rule 6.7.1 in the ground rules of the FTSE Global Equity Index Series, the changes will be made from start of trading on Monday (June 21)," it said.

FTSE Group is an independent company whose sole business is the creation and management of indices and associated data services. FTSE serves thousands of clients in 77 countries worldwide, working directly with pension plan sponsors, investment banks, brokers, consultants, and fund managers, stock exchanges and data providers. It is estimated that $2.5 trillion of assets are under management using FTSE indices.

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