NSE to make changes in index maintenance guidelines, criteria from March 31

The National Stock Exchange (NSE) on Tuesday announced changes in index maintenance guidelines, criteria and methodology. From March 31, there will be changes to revision in the index. reconstitution date, stock capping, quarterly rebalancing of shares and investible weight factors, and calculation of Price to Earnings (P/E) ratio for indices.

There will also be changes to calculation of dividend yield per cent for indices. According to a release, the replacement of stocks resulting from periodic index reconstitution will be implemented from the last working day (beginning of day) of March, June, September and December. This will also depend on the review frequency as may be applicable for each index.

"In case of capped indices, capping of stocks will be implemented from the last working day of March, June, September and December by taking into account closing prices as on T-3 basis, where T day is last working day of March, June, September and December," the release said. Further, quarterly rebalancing of shares and investible weight factors will be implemented from the last working day of March, June, September and December.