The CNX 200 Index is designed to reflect the behaviour and performance of the top 200 companies measured by free float market capitalization. The index comprises of 200 such companies that are listed on the National Stock Exchange (NSE).
The CNX 200 Index is computed using free float market capitalization method with a base date of January 1, 2004 indexed to a base value of 1000, wherein the level of the index reflects the total free float market value of all the companies in the index relative to particular base market capitalization value. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, right issue, new issue of shares etc. without affecting the index value.
- The CNX 200 Index represents about 87.45% of the free float market capitalization of the stocks listed on NSE as on March 31, 2015.
- The total traded value for the last six months ending March 2015, of all index constituents is approximately 81.48% of the traded value of all stocks on NSE.
The criteria for the CNX 200 Index include the following:
- Top 300 companies ranked on average free-float market capitalization and aggregate turnover for the last 6 months form part of the eligible universe for selection of companies in the index.
- The company’s trading frequency should be at least 90% in the last six months.
- The company should have reported positive net worth.
- The company should have minimum investable weight factor (IWF) of at least 10%.
- The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a period of 3 months instead of a period of 6 months.
- Final selection of 200 companies shall be done based on the free-float market capitalization of the companies.
- The review will be carried out on a semi-annual basis.