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BSE Eligible for FTSE Russell Equity Indices from 2027

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By Market Desk•
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Traders on the floor of the Bombay Stock Exchange

Key Highlights

FTSE Russell designates BSE eligible for equity indices from March 2027. Fast-track for IPOs and NSE prioritization for dual listings detailed.

FTSE Russell has officially designated India’s as an eligible exchange for its equity indices, a significant move for the Indian market.

This development means stocks trading on BSE’s main board will become eligible for assessment and potential inclusion in FTSE Russell’s equity indices. Evaluations are scheduled to begin with the March 2027 review.

Fast-Track for New IPOs

New companies listing on the BSE main board through initial public offerings (IPOs) will also qualify for a fast-track screening process. This aims to expedite their potential index inclusion.

Prioritization for Dual Listings

The index provider clarified specific criteria for companies listed on multiple exchanges.

  • If a company is listed on both the BSE and the National Stock Exchange (NSE) and meets liquidity requirements on both, the NSE-listed security will be prioritized for index eligibility.
  • This preference is due to the NSE’s greater participation from international institutional investors.
  • Stocks already listed on the NSE are currently eligible for inclusion in FTSE Russell indices.

Inclusion and Inflow Projections

This announcement follows a separate decision by the NSE to incorporate BSE into its benchmark Nifty 50 index, effective from September.

  • Analysts at Nuvama have estimated that NSE’s Nifty 50 move could generate passive fund inflows of approximately $695 million for BSE.

These strategic recognitions underscore a pivotal period for the BSE, enhancing its visibility and potential for attracting significant capital flows in the coming years.