FTSE Russell has announced that securities listed on the BSE main board will become eligible for assessment for its global equity indices from the March 2027 review. According to reports from The Hindu BusinessLine, any newly listed securities which do not immediately qualify will also be eligible for fast track screening for inclusion in widely tracked international benchmarks. This decision enhances global index prospects for NSE shares ahead of its anticipated listing in 2027.
NSE, the world's largest derivatives exchange by number of contracts traded, is expected to list its shares on BSE towards the end of the month, after receiving the market regulator's final approval last Friday. As reported by The Hindu BusinessLine, the public offer is expected to value the country's largest exchange at around ₹30,000 crore, with strong investor interest already seen in the unlisted space ahead of the issue.
According to Arun Kejriwal, founder of Kejriwal Securities, quoted in The Hindu BusinessLine, "All large-cap stocks listed on NSE are also listed on BSE, so FTSE's inclusion of BSE-listed stocks makes no difference to any stocks as of now." However, he noted that "the material difference would be for NSE's shares, which are expected to list soon on BSE and could become eligible for inclusion in global indices." Securities listed on NSE are already eligible for FTSE Russell's indices, making the BSE inclusion particularly relevant for NSE's upcoming listing.
While the FTSE Russell recognition removes one potential exchange-level hurdle, index inclusion is not automatic. As reported by The Hindu BusinessLine, securities would still have to meet respective index provider requirements on factors such as size, liquidity and investability. BSE indices assess stocks on factors including float-adjusted market capitalisation, traded value and trading frequency over the relevant observation period. Given the expected interest in NSE's shares, the stock is expected to build the liquidity needed for such assessments once trading begins.
If the listing takes place as planned, NSE's shares would have accumulated around six months of trading history on BSE by the time of FTSE Russell's March 2027 review. According to The Hindu BusinessLine, international institutional investors often access large markets through benchmark and passive funds, making inclusion in widely tracked global indices an important potential source of incremental demand for a large stock such as NSE. The FTSE's recognition could nevertheless remove one potential exchange-level hurdle for NSE at a time when the exchange is preparing to enter the listed market.
