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BSE Joins FTSE Russell Indices: A New Era for Indian Stocks
21 Aug
Summary
- BSE-listed stocks will be assessed for FTSE Russell index inclusion starting March 2027.
- Fast-track screening is available for stocks listing on BSE via initial public offerings.
- NSE-listed securities are prioritized for index eligibility if liquidity tests are met on both exchanges.
India's BSE has officially been recognized by FTSE Russell as an eligible exchange for its global equity indices. This significant development means that stocks listed on BSE's main board will be considered for inclusion in FTSE Russell indices, beginning with the March 2027 review.
Companies newly listing on the BSE through initial public offerings will also benefit from a fast-track screening process for index eligibility. FTSE Russell clarified that for companies listed on both BSE and NSE, the NSE-listed security would be selected if it passes liquidity tests on both exchanges. This preference is attributed to the NSE's larger base of international institutional investor participation.
This move is anticipated to attract passive fund flows into BSE-listed stocks. NSE-listed stocks are already eligible for inclusion in FTSE Russell indices. Earlier this month, the NSE announced its intention to include BSE in its benchmark Nifty 50 index, an event expected to bring substantial inflows.
