BSE launches BSE SmallCap 500 Index and four new Factor Indices

BSE Index Services Pvt Ltd, a BSE subsidiary, has launched the BSE SmallCap 500 Index and four new Factor Indices. These transparent, rules-based benchmarks target Quality, Value, Momentum, and Low Volatility in the Small-Cap segment.

BSE Index Services Pvt Ltd, a wholly owned subsidiary of BSE, on Monday announced the launch of the BSE SmallCap 500 Index and four new Factor Indices based on the BSE SmallCap 500 Index universe.

Details of the New BSE Indices

The BSE SmallCap 500 Universe Factor Indices are reconstituted quarterly, have a base value of 1000, and the first value date is September 19, 2005, along with the additional screening of 90 per cent Stock Trading Frequency, BSE Index Services Pvt Ltd said in a statement.

The indices launched today include BSE Smallcap 500, BSE Smallcap 500 Quality 50, BSE Smallcap 500 Momentum 50, BSE Smallcap 500 Low Volatility 50, and BSE Smallcap 500 Enhanced Value 50.

CEO on Strategic Expansion

Ashutosh Singh, MD & CEO of BSE Index Services Pvt Ltd, highlighted the significance of these indices, stating, "The launch of the BSE SmallCap 500 Universe Factor Indices marks an important expansion of our factor-based index offerings."

"This index family provides transparent and rules-based benchmarks designed to capture key equity factors across India's Small-Cap segment by incorporating distinct factor strategies such as Quality, Value, Momentum and Low Volatility. These indices aim to support product innovation and offer asset managers and institutional investors efficient tools to access differentiated small-cap factor exposures within the broader equity market," he said.

Applications and Investor Benefits

These new indices can be used for running passive strategies such as ETFs and Index Funds. It can also be used for benchmarking of PMS strategies, MF schemes and fund portfolios.

Investors can now access a broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE's suite of indices.

About BSE Index Services Pvt Ltd

BSE Index Services Private Ltd (formerly Asia Index Pvt. Ltd.) is a wholly owned subsidiary of BSE Ltd, Asia's oldest stock exchange and home to the iconic SENSEX index - a leading indicator of Indian equity market performance. BSE Index Services Pvt Ltd aims to provide a full array of indices to global/domestic investors and calculates, publishes, and maintains a diverse family of indices. (ANI)

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