FTSE Russell said on Thursday that India's BSE has met the criteria to be an eligible exchange for its equity indices, paving the way for BSE-listed stocks to be considered for index inclusion and potentially attracting passive fund flows .
Stocks listed on BSE's main board will be assessed for index eligibility from FTSE's March 2027 review, the index provider said.
Any stocks listing on the BSE main board through initial public offerings will also be eligible for fast-track screening, it added.
If a company is listed on both the BSE and the NSE and passes liquidity tests on both exchanges, the NSE-listed security will be selected for index eligibility as the exchange has more international institutional investor participation, FTSE Russell said.
NSE-listed stocks are already eligible for inclusion in FTSE Russell indices.
The NSE earlier this month said it would add BSE to its benchmark Nifty 50 index, effective September, which analysts at Nuvama said could bring in $695 million of inflows for BSE.