The general guidelines for selection of constituents in BSE-100 are as follows:
- Equities of companies listed on Bombay Stock Exchange Ltd. (excluding companies classified in Z group, listed mutual funds, scrips suspended on the last day of the month prior to review date, scrips objected by the Surveillance department of the Exchange and those that are traded under permitted category) shall be considered eligible.
- Listing History: The scrip should have a listing history of at least 3 months at BSE. An exception may be granted to one month, if the average free-float market capitalization of a newly listed company ranks in the top 10 of all companies listed at BSE. In the event that a company is listed on account of a merger / demerger / amalgamation, a minimum listing history is not required.
- The scrip should have been traded on 95% of the trading days in the last three months. Exceptions can be made for extreme reasons like scrip suspension etc
- From the list of constituents selected through Steps 1-3, the top 150 companies based on free-float market capitalisation (avg. 3 months) are selected as well as any additional companies that are in the top 150 based on full market capitalization (avg. 3 months).
- The filtered list of constituents selected through Step 4 (which can be greater than 150 companies) is then ranked on absolute turnover (avg. 3 months).
- Any company in the filtered, sorted list created in Step 6 that has Cumulative Turnover of >99%, are excluded
- The remaining companies are then sorted based on whether they are an existing member of the BSE-100 constituents and then on free-float market capitalization.
- Industry/Sector Representation: Scrip selection will generally attempt to maintain index sectoral weights that are broadly in-line with the overall market.
- Track Record: In the opinion of the BSE Index Committee, all companies included within the index should have an acceptable track record.
Source : BSE