According to the official, the new index is expected in the current fiscal. S&P BSE Indices have two sustainability indices -- S&P BSE Carbonex and S&P BSE Greenex -- which are environment-oriented and remained as "non-movers".
"We are already working toward introducing a new sustainability index that will try to capture holistic sustainability parameters. We are working with our partners and hope it could be out by this year," the index provider's Business Head Koel Ghosh said.
She said the index provider is waiting for data from RobecoSAM, an investment specialist focused exclusively on sustainability investing.
"They are currently capturing sustainability data from BSE 100 companies and once they come out with data, we will create the index on the basis of that data," Ghosh said.
"The two existing sustainability indices were created in 2012. They are non movers. Apart from carbon and green house gas emissions, there are other parameters in the sustainability category. The new index will capture more parameters in the sustainability space," Ghosh added.
She, however, said gradually passive investments have been gaining popularity through index based products. Assets under management for equity exchange-traded funds (ETFs) amounted to Rs 27,203 crore as of December 2016-35 times higher than it was three years ago.
An ETF holds assets such as stocks, commodities, or bonds. It trades on the stock exchange like any ordinary stock over the course of the trading day. Most ETFs track an index, such as a stock index or bond index.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.