The Hindu Business Line : BSE launches IPO Index

MUMBAI: The Bombay Stock Exchange (BSE), on Monday said that it has launched a new BSE IPO Index that will track the value of companies for two years after listing subsequent to the successful completion of their IPOs.

Robust growth of the Indian economy at 6.7 per cent in 2008-09 and the expectation of higher growth in the future are expected to boost the primary market, the BSE said in a press release issued here.

“For this and other reasons, it is an appropriate time to introduce to the market an indicator that will track primary market conditions in the Indian capital market,'' the release said.

BSE, Asia's oldest bourse, said that it was introducing a ceiling (capping) on weightings of index constituents.

Market capitalisation weightings of index constituents will be limited to 20 per cent. If a constituent's market capitalisation would result in a higher weighting, the company's weight will be suitably adjusted to ensure that no single company has a weig ht in excess of 20 per cent in the index.

“However, between any re-balancing, weightage of any index constituent can exceed 20 per cent,'' the release said. - PTI

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