India’s BSE cleared as eligible exchange for FTSE Russell equity indices
The development could broaden the investor base for eligible BSE-listed companies as global index-linked investment increasingly gains importance in India.
FTSE Russell recently announced that India's Bombay Stock Exchange (BSE) has been deemed eligible to participate in their equity indices. This decision opens the door for BSE-listed stocks to be considered for indexing, potentially drawing passive fund investments. From FTSE's next review in March 2027, stocks listed on BSE's main board will undergo assessment for index eligibility.
Moreover, BSE-listed companies issuing stocks through initial public offerings will also be eligible for a streamlined screening process. If a firm is listed on both BSE and the National Stock Exchange (NSE) and meets liquidity requirements on both platforms, the NSE-listed security will be given priority for inclusion in the index.
This is due to the NSE's greater involvement from international institutional investors. Currently, NSE-listed securities are already qualified for consideration in FTSE Russell indices. Earlier this month, the NSE revealed plans to incorporate BSE into its benchmark Nifty 50 index, set to commence in September. Analysts at Nuvama predict that this move could bring approximately $695 million in inflows to BSE.
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