About BSE Diversified Financials Revenue Growth Index
The BSE Diversified Financials Revenue Growth Index (INR) is a specialized index designed to measure the performance of private companies within the BSE 500 that are classified under Financial Services according to the common India Industry Classification Structure. The index includes stocks that meet specific sales growth criteria as defined in Appendix III, with an exemption for eligible stocks listed in the past two years due to IPOs and demergers. Constituents are weighted by float-adjusted market capitalization, with an individual stock weight cap of 5%.
Sectors in the BSE Diversified Financials Revenue Growth Index
Non-Banking Financial Companies (NBFC), Private Sector Bank, Holding Company, Life Insurance, Financial Technology (Fintech), General Insurance, Asset Management Company, Other Bank, Housing Finance Company, Depositories, Clearing Houses and Other Intermediaries, Exchange and Data Platform, Investment Company, Stockbroking & Allied, Other Financial Services, Financial Products Distributor, and Microfinance Institutions.
Constituent Selection Criteria for BSE Diversified Financials Revenue Growth Index
The members of the BSE Diversified Financials Revenue Growth Index will be securities of the BSE 500 and will be common equities traded on national exchanges with a macroeconomic variable value of Financial Services and must not be considered as Public Sector Undertakings (PSUs). The Semi-annual review will consider an average Sales-per-Share Growth factor adjusted for each security and strip out IPO and demerger securities created over the last two years. The 67.5% of stocks ranking highest by Sales-per-Share Growth of both current and non-current constituents are selected. Current constituents ranked between 67.5% and 82.5% are taken until the top 75% is reached and if necessary non-constituents are taken by rank until the target of 75% is reached. This index consists of all the following eligible IPO stocks. Eligible Demerged stocks shall be re-included if they were constituents in either of the last two consecutive two quarterly rebalancing.
How is the BSE Diversified Financials Revenue Growth Index Calculated?
The BSE diversified financials revenue growth share price of constituents are weighted by float-adjusted market capitalization, subject to a 5% cap per stock, and rebalancing occurs quarterly, effective on the Monday following the third Friday of March, June, September, and December. The reference dates for sales-per-share data are the last trading day of January and July for the June and December rebalancings, respectively. Constituent weights are calculated using closing prices on the Wednesday prior to the second Friday of the rebalancing month.
Management of BSE Diversified Financials Revenue Growth Index
The indices are overseen by the Index Committee of Asia Index Pvt. Ltd. The committee regularly reviews corporate actions affecting the constituents, compares the index composition against the market, considers candidates for addition, and reacts to major market events. The committee may consider revisiting policies relating to index composition with respect to company selection, dividend treatment, and share counts in the index to continue to ensure that it is robust, transparent, and representative of the growth dynamics of the financial services sector.
