The CNX Smallcap Index is designed to reflect the behaviour and performance of the
small capitalised segment of the financial market. The CNX Smallcap Index
comprises of 100 tradable, exchange listed companies.
The index is calculated using free float market capitalization methodology with
a base date of January 1, 2004 indexed to a base value of 1000.
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The CNX Smallcap Index represents about 2.19% of the free float
market capitalization of the stocks listed on NSE as on December 30, 2011.
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The total traded value for the last six months of all index
constituents is approximately 7.46% of the traded value of all stocks on NSE.
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All the companies that are listed on NSE, which individually
constitute more than 5% free-float market capitalization of the universe, shall
be excluded in order to reduce the skewness in the weightage of the companies in
the universe.
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After step (a), the weightage of the remaining companies in
the universe will be determined again.
- After step (b), the cumulative weightage will be calculated.
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After step (c), companies which form part of the cumulative
percentage in ascending order upto the first 90 percent (i.e. up to 89.99
percent) of the revised universe shall be excluded.
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After step (d), companies within the range of 90th to 95th
percentile shall be ranked in the descending order of aggregate turnover for the
last six months.
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After step (e), the top 100 companies shall constitute the
CNX Smallcap Index subject to fulfilment of the following additional criteria:
- The company must have a 3 years’ track record of operations with
positive net worth.
- Companies must have demonstrated a trading frequency of at least 90
% in the last six months
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All constituents of the CNX Smallcap Index must have a
minimum listing record of 6 months.
- The review will be carried out on a semi-annual basis.