The general guidelines for selection of constituents in BSE TECk are as follows:
Eligible universe
Scrips classified under information technology, media and telecom sectors that are present constituents of BSE-500 index form the eligible universe.
Trading Frequency
Scrips should have a minimum trading frequency of 90% in preceding three months.
Market capitalization
Scrips with a minimum of 90% market capitalization coverage in each sector based on free-float final rank form the index.
Buffers
A buffer of 2% both for inclusion and exclusion in the index is considered so that movements in and out of the index are minimized. For example, a company can be included in the index only if it falls within 88% coverage and an existing index constituent cannot be excluded unless it falls above 92% coverage. However, the above buffer criterion is applied only after the minimum 90% market coverage is satisfied.
Source : BSE
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