BSE Ltd. launched "BSE PSU Index" on 4 June 2001. This index consists of major Public Sector Undertakings listed on BSE. The BSE PSU Index is displayed on-line on the BOLT trading terminals nationwide.Objective:
- An Index to track the performance of listed equity of PSU companies
- A suitable benchmark for the Central Government to monitor its wealth on the bourses.
The Base Date for the BSE PSU Index is 1st February 1999, the date when the BSE-500 was launched. Being a subset of BSE-500, the BSE PSU Index ensures a reasonable history of how the Central Government wealth fluctuated on the bourses. The Base Value for the BSE PSU Index has been set at 1000 to ensure adequacy in terms of daily index movement.
Scrip selection criteria for BSE PSU
For consideration of scrips for inclusion in BSE PSU Index, Public Sector Undertaking refers to any undertaking wherein the Central Government holding is equal to or more than 51%. Since BSE PSU index is a subset of BSE-500 index, scrips that form part of BSE-500 index automatically get included in BSE PSU index.
If an existing constituent is traded under the ex-entitlement basis it will be excluded from all BSE Indices. This is done because during this period BSE is unable to ascertain the valuation of the constituent and valuation of a constituent is required for Index Calcualtion.