To form part of the NIFTY100 Enhanced ESG Index, stocks should qualify the following eligibility criteria:
- Stocks should form part of NIFTY 100
- Companies should have an ESG score
- Companies should have normalized ESG Score of atleast 50%
- Companies with a controversy category 4 and 5 will be excluded (scale: 1-5, category of 1 being least controversial)
- Companies engaged in the business of tobacco, alcohol, controversial weapons and gambling operations shall be excluded
The number of constituents in the index will be variable. Sector weights are based on free float market capitalisation. Each constituent within sector is ESG tilt weighted and capped at 10%. Index is reconstituted on a semi-annual basis