., a wholly owned subsidiary of BSE, on Wednesday launched the BSE REITs and Commercial Real Estate Index, a new benchmark designed to track the performance of India’s income-generating real estate sector.
The index covers listed Real Estate Investment Trusts (REITs) as well as companies classified under residential and commercial projects with significant exposure to commercial real estate, including office, retail, and leasing-driven business models.
The index carries a base value of 1,000, with a first value date of September 19, 2022, and will be reconstituted semi-annually in March and September. Individual constituents are capped at 20 per cent to ensure diversification.
Ashutosh Singh, MD and CEO of BSE Index Services, described it as an industry-first index focused on India’s yield-generating real estate ecosystem.
He said the index was designed to capture listed REITs alongside companies with material exposure to commercial assets and rental income streams, making it suitable for the development of investable products and targeted strategies.
The index is intended to serve as a basis for passive investment vehicles such as exchange-traded funds and index funds. It can also be used for benchmarking Portfolio Management Service strategies, mutual fund schemes, and fund portfolios.
BSE Index Services, formerly known as Asia Index Pvt. Ltd., calculates and maintains a range of indices for domestic and global investors. Its parent, BSE, is Asia’s oldest stock exchange and holds the distinction of being the world’s largest exchange by number of listed companies. BSE’s flagship Sensex index is widely regarded as a barometer of the Indian economy.
The launch adds a dedicated real estate benchmark to BSE’s existing suite of indices at a time when India’s commercial property market and listed REIT segment have drawn growing institutional interest.