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Change in BSE AllCap Index Methodology
- Deadline
- 21 Sept 2026 · 43 days ago · Effective date of methodology changes
- Who
- Companies listed and traded on the BSE
- Action
- Clients with queries regarding the methodology change should contact the Index Cell.
What changed
BSE Index Services Pvt Ltd has announced revisions to the methodology for the BSE AllCap Index, effective September 21, 2026. The updated framework modifies the eligibility criteria and index construction process, including new exclusions for specific trading groups (Y, Z, P, and INVITS) and revised liquidity and market capitalization screening requirements. The index now aims for a minimum of 1,200 companies at each rebalancing, with specific relaxation protocols if this target is not met. Existing quarterly reviews for trading frequency and impact cost remain in place, with removals effective on the Monday following the third Friday of March, June, September, and December.
What you must do
- Clients with queries regarding the methodology change should contact the Index Cell.
Key dates
- Effective from
Document text
NOTICE
| Notice No. | 20260803-12 |
| Notice Date | 03 Aug 2026 |
| Category | Index |
| Segment | Equity |
| Department | Index Cell |
| Subject | Change in BSE AllCap Index Methodology |
| Attachments | No Attachment |
Change in BSE AllCap Index Methodology
MUMBAI, August 03, 2026: BSE Index Services Pvt Ltd (formerly Asia Index Pvt. Ltd.) announces the following methodology changes to the BSE AllCap Index effective September 21, 2026. The upcoming scheduled reconstitution of BSE AllCap Index will be based on the new methodology.
| Existing Methodology | Revised Methodology |
|---|---|
| Eligibility Criteria and Index Construction | Eligibility Criteria and Index Construction |
| Eligibility Factors | Steps for Index construction: |
| Company Level Criteria. Companies must be domiciled in India and trading on the BSE. Companies with the following characteristics are not eligible for index inclusion: | 1. All listed and traded companies on BSE will be considered as Universe. |
| 1. Companies classified in Z group by BSE. | 2. From the universe, companies belonging to the following groups are excluded: Y, Z, P, INVITS. |
| 2. Companies traded under a permitted category at BSE. | 3. Companies with a listing history of less than six months (one month for initial public offerings (IPOs) and spin-offs), as of the rebalancing reference date are excluded. |
| 3. Companies objected by the Surveillance Department of BSE. | 4. Companies traded on BSE’s SME platform and suspended companies as of the rebalancing reference date are excluded. |
| 4. Companies traded on BSE’s SME platform. | 5. The remaining universe thus formed will be called Basic Eligibility Universe |
| 5. Companies with a listing history of less than six months (one month for initial public offerings (IPOs) and spin-offs), as of the rebalancing reference date. | 6. Companies which are part of Basic Eligibility Universe must satisfy all of the following conditions in order to be included in the index. |
| 6. Companies suspended, as of the rebalancing reference date. | a. Have a trading frequency greater than or equal to 80% over the prior 6-month period. |
| 7. Companies on the Graded Surveillance Measure (GSM) list. In addition, to become re-eligible for inclusion, a company previously dropped due to GSM must not be identified on the GSM list for the prior six consecutive months as of the rebalancing reference date. | b. Have an impact cost of 1% or less over the prior six-month period. |
| 7. The resultant universe after applying screening conditions in previous step will be called Liquidity-Qualified Universe. |
| Constituent Selection. Eligible companies must satisfy all of the following in order to be included in the index. | 8. From the Liquidity-Qualified Universe, companies objected by the Surveillance Department of BSE and companies on the Graded Surveillance Measure (GSM) list will be excluded. The remaining portfolio of stocks forms the Interim Universe. |
| 1. Have an impact cost of 1% or less over the prior six-month period. | 9. From the Interim Universe, the below category of companies are excluded: |
| 2. Rank within the top 1500 by average daily total market capitalization. | a. Companies ranking in the bottom 10 percentile based on Annualized traded value. |
| 3. Have a turnover ratio greater than or equal to 5%. | b. Companies ranking in the bottom 10 percentile based on 6-month Average daily float adjusted market capitalization. |
| 4. Have a trading frequency greater than or equal to 80% over the prior six-month period. | 10. The remaining universe thus formed constitutes the final BSE AllCap index |
| 5. Must rank in the top 2000 based on 6-month average free float market capitalization. | The index aims to have a minimum company count of 1200 at each rebalancing. If a shortfall occurs, the condition in step 9a is relaxed first followed by step 9b, until a count of 1200 companies are included in the index. |
| 6. Companies must rank in the top 2000 based on Annualized Traded Value. | Additionally, constituents’ trading frequency and impact cost are also reviewed quarterly. If, over the prior six-month period, a constituent has a trading frequency less than 80% or an average impact cost greater than 1%, it is removed from the index effective as of market open on the Monday following the third Friday of March, June, September, and December, respectively. |
| Additionally, constituents’ trading frequency and impact cost are also reviewed quarterly. If, over the prior six-month period, a constituent has a trading frequency less than 80% or an average impact cost greater than 1%, it is removed from the index effective as of market open on the Monday following the third Friday of March, June, September, and December, respectively. | |
| The index aims to have a minimum company count of 700 at each rebalancing. If a shortfall occurs, the threshold values outlined in steps 4 and 5 are reduced, first by 20%, then by 40%, then by 60% and finally by 80%, until a minimum of 700 companies are included in the index. If after the last threshold reduction above, the index still contains less than 700 companies, no further adjustments are made, and the index will contain fewer than 700 companies. |
For any additional queries, clients are requested to reach out to bseindex@bseindia.com
About BSE INDEX SERVICES PRIVATE LIMITED
BSE Index Services Private Ltd (formerly Asia Index Pvt. Ltd.) is a wholly owned subsidiary of BSE Ltd, Asia’s oldest stock exchange and home to the iconic SENSEX index – a leading indicator of Indian equity market performance. BSE Index Services Pvt. Ltd aims to provide a full array of indices to global / domestic investors and calculates, publishes, and maintains a diverse family of indices
About BSE
BSE is Asia’s oldest exchange and the world’s largest exchange in terms of the number of listed companies. BSE has been playing a prominent role in developing the Indian capital market and has successfully offered an efficient capital raising platform to many companies in India. The benchmark index of BSE, Sensex, is tracked by investors across the globe is also considered as a barometer for the growth of Indian Economy. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, stock lending and borrowing.
Index Services
August 03, 2026
Source details
- Source
- BSE Ltd (Bombay Stock Exchange)
- Type
- notice
- Published by source
- 03 Aug 2026
- Document number
- 20260803-12
- Issuing division
- Index Cell
- Effective date
- 21 Sept 2026
- Coverage area
- securities