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BSE to have India's first SME index soon

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Supriya Rai
New Update

BANGALORE, INDIA: The Bombay Stock Exchange (BSE) is gearing up to launch the first-ever SME index in the country, reports suggest.

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"Currently, BSE has 11 SME companies listed on its platform, while the National Stock Exchange (NSE) has one. BSE's SME index will have features similar to the BSE IPO index, said an expert close to the development," stated a Business Standard report.

BSE currently has 28 indices, which include six broad-based indices, two thematic, four investment strategy, 13 sectoral and three volatility indices. Out of these, BSE Sensex and BSE 100 are available for trading in the derivatives segment, it added.

The BSE SME index will track the value of companies for two years subsequent to successful completion of their initial public offerings (IPOs). "The maximum weight any company will command will be capped at 10-20 per cent and the constituent weightage will be reviewed at the time of inclusion/exclusion of a scrip and on monthly rebalancing, said a source."

Both NSE and BSE are banking on the fact that many venture capitalists and foreign funds have shown interest in Indian SMEs and hence, the report said, they would be keen to invest in these SMEs through the exchange.

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