Change in Methodology of BSE REITS and Commercial Real Estate Index

BSE Index Services Private Limited has announced a modification to the methodology of the BSE REITS and Commercial Real Estate Index. While existing rules regarding float-adjusted market capitalization weighting, minimum aggregate weight for REITs, and individual security caps remain in place, a new capping rule has been introduced. Effective July 29, 2026, the aggregate weight of index constituents belonging to the same sponsor or promoter group, based on majority holding, will be capped at 33%. This change applies to the index maintenance and rebalancing procedures.

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What changed

BSE Index Services Private Limited has announced a modification to the methodology of the BSE REITS and Commercial Real Estate Index. While existing rules regarding float-adjusted market capitalization weighting, minimum aggregate weight for REITs, and individual security caps remain in place, a new capping rule has been introduced. Effective July 29, 2026, the aggregate weight of index constituents belonging to the same sponsor or promoter group, based on majority holding, will be capped at 33%. This change applies to the index maintenance and rebalancing procedures.

Who is affected
  • Investors and market participants tracking the BSE REITS and Commercial Real Estate Index.
Required action
  • Market participants should note the new capping rule for constituents sharing the same sponsor or promoter group.
Key dates
  • Effective date of methodology changes — 28 Jul 2026
Thresholds
  • Minimum aggregate weight for constituents classified as REITs is 65%.
  • Individual security weight is capped at 20%.
  • Aggregate weight for constituents under the same sponsor or promoter group is capped at 33%.

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Source details

Source
BSE Ltd (Bombay Stock Exchange)
Type
notice
Published by source
27 Jul 2026
Document number
20260728-12
Issuing division
Index Cell
Effective date
28 Jul 2026
Coverage area
securities

Document text

Prepared for reading; wording retained from the source.

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[Image omitted. See the official document.]

NOTICE

Notice No.20260728-12
Notice Date28 Jul 2026
CategoryIndex
SegmentEquity
DepartmentIndex Cell
SubjectChange in Methodology of BSE REITS and Commercial Real Estate Index
AttachmentsNo Attachment

[Image omitted. See the official document.]

PRESS RELEASE

Change in Methodology of BSE REITS and Commercial Real Estate Index

MUMBAI, JULY 28, 2026: BSE Index Services Private Limited (formerly Asia Index Pvt. Ltd.) announces the following methodology changes to BSE REITS and Commercial Real Estate Index w.e.f. July 29, 2026.

Existing MethodologyNew Methodology
Constituent Weightings:Constituent Weightings:
Index constituents are float-adjusted market capitalization weighted, with the following capping rules at each quarter effective at the open of Monday following the third Friday of March, June, September and December. Constituents’ index shares are calculated using closing prices on the Monday prior to the second Friday of the rebalancing month as the reference price.No change.
The following capping procedure would be followed:The following capping procedure would be followed:
1. Constituents that are classified as REITs at basic industry level should have a minimum aggregate weight of 65%.1. Constituents that are classified as REITs at basic industry level should have a minimum aggregate weight of 65%.
2. The weight of each security within the index is capped at 20%2. The weight of each security within the index is capped at 20%
3. Where 2 or more index constituents belong to the same sponsor or promoter group (based on majority holding), the aggregate weight of such stocks shall be capped at 33%.

For any additional queries, clients are requested to reach out to bseindex@bseindia.com

About BSE INDEX SERVICES PRIVATE LIMITED

BSE Index Services Private Limited (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 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

July 28, 2026

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