S&P BSE Sensex 50 index was launched in December 2016 to measure the performance of the 50 largest BSE-listed firms.
Its constituents are selected from S&P BSE Large MidCap index and are weighted based on their float-adjusted market capitalisation.
As per the new methodology, all constituents should have a derivative contract to be eligible for the index.
The index is operated by Asia Index — an equal venture between S&P Dow Jones Indices LLC and BSE.
Currently, the individual float weight of any share class of a company, not linked to derivatives trading, cannot exceed 5 percent of Sensex 50 index.
The aggregate float weight of the index constituents, not linked to derivatives trading, cannot exceed 10 percent.
