images
add

BSE launches green equity index for companies

By jpgupta |

23rd February 2012

The Bombay Stock Exchange (BSE) has launched a new sectoral index BSE-GREENEX to measure the performance of companies in terms of carbon emissions and promote green investments. The index includes top 20 companies based on green house gas numbers, free float market capitalisation and turnover.

Mumbai: The Bombay Stock Exchange (BSE) has launched a new sectoral index — BSE-GREENEX — to measure the performance of companies in terms of carbon emissions and promote green investments.

The index includes top 20 companies based on green house gas numbers, free float market capitalisation and turnover.

"It is based upon purely quantitative and objective performance signals to assess carbon performance," BSE said in a statement, reports IANS.

"In keeping with BSE's efforts to create fund friendly indices, it is the third index which is calculated based on the capping methodology. This index will be helpful to asset managers for creation of various products, to help investors to invest in the green theme of India," it added.

The index is expected to have a feedback effect on companies' reputation.

It will help the government to gauge policy implementation and acceptance with regard to energy usage and efficiency measures, as the market follows an efficient signalling mechanism which adjusts positively or negatively to any news or policy shifts.

"It is my belief that companies and investors in developing countries like India, need to recognize the value created by corporations through the efficient and sensible use of energy," Minister of Corporate Affairs M Veerappa Moily said after inaugurating the index.

According to Madhu Kannan, managing director and chief executive officer of BSE, India is in a unique position to create a low-carbon green economy.

This index has been developed by BSE in association with ‘gTrade’ so as to promote green investing, with emphasis on financial performance and long-term viability of companies.

comments powered by Disqus
Sagarmala to have 12 smart cities

Project to boost India's GDP by 2 per cent

Foreign Trade Policy likely on April 1

Policy to roll out incentives to boost exports

Himachal starts e-payment facility at RTOs

Online facility for payment of taxes of commercial vehicles

latest opinion

Local Government Cloud Adoption – Time to make...

Rajeev Saxena

Director Sales, India Public Sector, Commercial and SAARC , NetApp India
'New Generation Governance': Transforming India...

Virender Jeet

Sr. VP Technology , Newgen Software
e-Biz Portal Goes Live

Sanjay Kumar

Senior Assistant Editor , Nine Dot Nine Mediaworx

survey & reports

add
close