Criteria governing CNX Smallcap Index:
- All the companies that are listed on NSE, which individually constitute more than 5% free-float market capitalization of the universe, shall be excluded in order to reduce the skewness in the weightage of the companies in the universe.
- After step (a), the weightage of the remaining companies in the universe will be determined again.
- After step (b), the cumulative weightage will be calculated.
- After step (c), companies which form part of the cumulative percentage in ascending order upto the first 90 percent (i.e. up to 89.99 percent) of the revised universe shall be excluded.
- After step (d), companies within the range of 90th to 95th percentile shall be ranked in the descending order of aggregate turnover for the last six months
- After step (e), the top 100 companies shall constitute the CNX Smallcap Index subject to fulfilment of the following additional criteria:
The company must have a 3 years track record of operations with positive net worth.
Companies must have demonstrated a trading frequency of at least 90 % in the last six months
All constituents of the CNX Smallcap Index must have a minimum listing record of 6 months.
The review will be carried out on a semi-annual basisSource :