The Colombo Stock Exchange (CSE) yesterday announced the inclusion of non-voting shares, which are listed and traded on the exchange, in its index market capitalization (IMC) calculation.
“Including non-voting shares in the calculation of indices is seen as a common practice internationally and is carried out by a number of leading exchanges and index providers globally,” the CSE said in a brief note.
“Non-voting shares are eligible for inclusion in the calculation of domestic market capitalization, according to the statistical definition of the World Federation of Exchanges,” it added.
Accordingly, with effect from June 19, 2017, the benchmark All Share Price Index (ASPI) will include the non-voting shares currently listed on the CSE.
The non-voting shares listed by the respective constituents of the S&P SL 20 Index are set to be included in the S&P SL 20 Index, provided that they meet the relevant liquidity requirements.