NSE Indices Limited has announced the launch of the Nifty500 Ahimsa Index based on ‘ethical’ practices.
NSE Indices Limited, the index services company of the National Stock Exchange (NSE), has announced the launch of the Nifty500 Ahimsa Index, a new thematic index that tracks companies from the Nifty 500 universe that align with the principles of ‘Ahimsa’ or non-violence.The index is designed for investors seeking exposure to companies that follow business practices consistent with animal welfare considerations. Developed in collaboration with the Ahimsagain Foundation within the framework of the Ahimsa Investment Movement (AIM), the index uses an ethical vetting process to identify eligible companies.Under the AIM framework, companies are evaluated based on their products, services and overall business practices and are classified into three categories: green, orange and red.
Ani News Agency reported that only companies classified in the green category are eligible for inclusion in the index, while companies classified in the orange and red categories are excluded.NSE Indices said the launch reflects the growing demand for objective and responsible investment products that combine market exposure with specific sustainability and ethical considerations.“The index provides market participants with a transparent, rules-based benchmark that integrates ethical considerations with broad equity market exposure,” NSE Indices said.
The Nifty500 Ahimsa Index will feature selected companies from the diverse Nifty 500 universe, allowing cross-sector representation while applying Ahimsa-based screening criteria. The index is expected to serve as a benchmark for fund managers and support the creation of passive investment products such as exchange-traded funds (ETFs), index funds and other regulated investment solutions.The index has a base date of April 1, 2016, with a base value of 1,000. Its components will be reviewed and rebalanced semi-annually, with stock weights determined based on the market value of free float shares.