NEI Top 50 methodology & governance

01Objective

The primary objective of the NEI Top 50 is to provide a transparent, continuous, and representative benchmark capturing performance of India's emerging digital and public technology ecosystem.

02Index specifications

03Eligibility & inclusion criteria

To qualify for inclusion in the NEI universe, a company must satisfy all of the following criteria on the official review date:

04Rebalancing & review framework

4.1 Review triggers & schedule

The index universe, constituent selection, and market-capitalisation weights are reviewed and recalculated under two triggers:

• Scheduled quarterly reviews — executed on the final business day of March, June, September, and December.
• Event-driven IPO reviews — executed on the official listing day (ex-date) of any qualifying new economy IPO.

4.2 Scheduled quarterly review

• Selection — All eligible companies in the new economy universe are ranked in descending order by full market capitalisation. The top 50 highest-ranked companies form the constituent basket for the subsequent quarter.
• Weight reset — Constituent weights are reset based on their closing full market capitalisations on the review date.

4.3 Intra-quarter constituent retention

Market-capitalisation rankings are evaluated only on official review dates. If an active constituent's market capitalisation declines mid-quarter — causing its rank to drop outside the top 50 between review cycles — it remains an active constituent until the next scheduled review. No constituent is removed mid-quarter due to organic price movement.

4.4 Event-driven IPO fast-entry

• Newly listed new economy companies that meet all business-model and institutional-ownership criteria are eligible for immediate entry.
• If a newly listed New Economy company's full market capitalisation evaluated at its official IPO Offer Price ranks within the Top 50 universe, it is added to the index effective at the market open of its listing day, using its IPO Offer Price as the base price to capture performance.
• Upon entry, all constituent weights are recalculated to reflect the expanded market-cap basket, and an immediate divisor adjustment is applied on the effective date to ensure value-neutral index continuity.
• Constituent-count enforcer. To maintain a basket of 50, the lowest-ranked constituent (rank #51) is removed at the close of the listing day, preserving the top-50 focus.

05Corporate actions & divisor maintenance

The index uses a divisor methodology to maintain continuous historical levels across quarterly reconstitutions, stock additions and deletions, and structural corporate events:

5.1 Divisor neutrality

When the underlying constituent basket changes, total index market capitalisation changes instantly. To prevent artificial price jumps, the active divisor is recalculated on the effective date so the index level is identical immediately before and after the change.

5.2 Standard corporate-action treatments

• Stock splits & bonus issues. Strictly divisor-neutral. Outstanding shares increase by the split/bonus ratio while price drops proportionally; total market cap is unchanged, so no divisor adjustment is made.
• Portfolio reconstitution (adds / drops). Capital changes from added or removed companies are absorbed via a proportional expansion or contraction of the divisor on the effective rebalance date.
• Capital expansion (rights issues / FPOs / buybacks). Routine share changes are updated on the review date.
• Mergers, acquisitions & delistings. If a constituent is delisted, acquired, or goes private mid-quarter, it is removed on the ex-date and the divisor is adjusted accordingly.

06Market data, calculation & settlement

• Public data sourcing. Market data — stock prices, outstanding shares, and fundamental attributes — is sourced via public market data feeds (Yahoo Finance). The index does not rely on a direct, proprietary exchange ticker feed.
• Intraday indicative refreshes.During Indian equity market trading hours (09:15–15:30 IST), the index refreshes roughly every 30 seconds using delayed public market quotes. Intraday levels are indicative values for monitoring purposes; the official level settles after the close once the day's closing prices are final.
• Fundamental & share maintenance. Outstanding share counts, company fundamentals, and related universe metrics are refreshed on a quarterly basis, keeping market-capitalisation weights current between reviews.

07Governance & policy updates

The index framework is monitored on an ongoing basis and evaluated as deemed necessary to reflect evolving market structures, corporate actions, and regulatory shifts in India's new economy. Material changes to this methodology are versioned and published here.