Putting money where your values are: BSE launches ‘Saatvik 100 index’

The Bombay Stock Exchange (BSE) Index Services Pvt.Ltd, a wholly owned subsidiary of BSE, has launched ‘BSE Saatvik 100 Index’. Under which, those companies will be excluded who link to non-saatvik activities.

The BSE Saatvik 100 Index has been designed to include– 

companies that align with Saatvik principles such as non-violence (Ahimsa),

compassion towards living beings,

avoidance of toxic or addictive products and habits.

While excluding businesses that are considered to be in direct conflict with these values. 

The index universe is derived from the constituents of the BSE 500. However, companies belonging to specific Basic Industries listed under the index methodology are excluded from eligibility.

Only companies that meet the required criteria are considered for inclusion in the index.

During each semi-annual review, eligible companies must be part of the BSE 500 and should not belong to the excluded industry categories. 

From the eligible pool, the top 100 companies are selected based on their average total market capitalisation to form the BSE Saatvik 100 Index.

The index will undergo regular review and maintenance. During rebalancing, the top 80 companies based on six-month average total market capitalisation are selected first.

While existing constituents ranked between 81 and 120 are retained based on their ranking until the index reaches its target of 100 companies.

Ashutosh Singh, MD & CEO, BSE Index Services Pvt. Ltd. has reportedly said that the BSE Saatvik 100 Index is a significant step for those investors seeking alignment between their investment decisions and value-based principles.