Chauhan was one of the founders of the NSE, working with the exchange from 1992 to 2000. He joined the BSE as deputy chief executive officer in 2009 and was appointed as the CEO in 2012
This new initiative would require companies to meet additional disclosure requirements to provide for higher quality of public information and greater transparency, NSE said.
The index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products, NSE Indices said.
In an interview with CNBC-TV18, Deborah Fuhr of ETFGI.com, a research firm that specialises in the ETF industry, said that if overseas investors want to invest in India through the security, they prefer to invest in India ETFs that are listed abroad.