Nifty500 Ahimsa Index (Economy)

Nifty500 Ahimsa Index (Economy)

3. Nifty500 Ahimsa Index (Economy)

Why In News:  NSE Indices Limited, the index-services subsidiary of the National Stock Exchange, has launched the Nifty500 Ahimsa Index.  The index tracks companies from the Nifty 500 universe whose businesses align with the principle of Ahimsa (non-violence). Source: The Indian Express, Page 13, 23 July 2026, 'NSE's Ahimsa index: Where love for mammals meets investing' How the Index Works  Under the AIM framework, companies are classified into Green, Orange and Red categories based on their alignment with non-violence principles; only Green-category companies qualify for inclusion.  The index currently comprises 326 companies selected from the Nifty 500, has a base date of 1 April 2016 and a base value of 1,000, and will be reconstituted semi-annually with weights based on free-float market capitalisation.  Its launch follows the BSE's Saatvik 100 Index, introduced a month earlier, which similarly screens out companies linked to animal cruelty, addictive or toxic products, and other harmful activities. Why This Matters  The index is expected to support new passive investment products such as ETFs and index funds built around ethical or values-based investing themes in India.  It reflects a broader global trend of ESG (Environmental, Social and Governance) and thematic investing. Key Facts for Prelims  SEBI regulates index providers and mandates disclosure norms for benchmark methodology under its Index Providers Regulations.  A thematic index differs from a broad market index like Nifty 50 or Nifty 500 in that it selects constituents based on a specific idea, sector or ethical screen rather than pure market capitalisation.  National Stock Exchange was incorporated in 1992 and began operations in 1994. ○ Headquarters: Located in Mumbai, Maharashtra. ○ Regulatory Recognition: Recognized by SEBI in 1993. ○ Ownership Structure: Held by a mix of public and private financial institutions, including LIC, SBI, Temasek, and Morgan Stanley.