NSE Launches 'Ahimsa' Index for Value-Based Investing

NSE Indices Limited has introduced the Nifty500 Ahimsa Index, a new thematic investment benchmark. This index focuses on companies within the Nifty 500 that demonstrate business practices consistent with the principles of Ahimsa, or non-violence. The evaluation uses an Ahimsa framework, categorizing companies into Green, Orange, and Red bands. Only companies classified as 'Green' are eligible for inclusion, while 'Orange' and 'Red' band companies are excluded.

The Nifty500 Ahimsa Index aims to meet evolving investor preferences by offering a transparent, rules-based benchmark. It integrates ethical considerations with broad-based equity market exposure across various sectors. The index draws its constituents from the diversified Nifty 500 universe, promoting companies with strong alignment to responsible and sustainable business practices.

Designed as a benchmark for asset managers, the index is expected to facilitate the creation of passive investment products like ETFs and index funds. Its base date is April 01, 2016, with a base value of 1000, and it will be reconstituted semi-annually. Stock weights are determined by free-float market capitalization, expanding NSE's thematic and ESG offerings.