NSE launches Nifty500 Ahimsa Index to track companies aligned with nonviolence principles

According to the exchange, the index is aimed at investors who want exposure to companies that do not engage in activities that harm animals. It has been developed in collaboration with the Ahimsagain Foundation and is based on the foundation’s Ahimsa Investment Movement (AIM) framework, which assesses companies on the extent to which their products, services and business practices adhere to Ahimsa principles.

Under the AIM framework, companies are classified into three categories: Green, Orange and Red. Only companies classified under the Green category are eligible for inclusion in the index, while those placed in the Orange and Red bands are excluded, NSE said in a press release.

NSE Indices said the launch of the Nifty500 Ahimsa Index expands its range of thematic indices designed to cater to evolving investor preferences. The index is intended to provide a transparent, rules-based benchmark that combines ethical investment considerations with broad-based exposure to the equity market.

The index draws its constituents from the diversified Nifty 500 universe, providing representation across sectors while selecting companies that demonstrate stronger alignment with responsible and sustainable business practices under the AIM framework.

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According to the exchange, the index is also expected to serve as a benchmark for asset managers and support the development of passive investment products, including exchange-traded funds (ETFs), index funds and other structured investment solutions.

The Nifty500 Ahimsa Index has a base date of April 1, 2016, and a base value of 1,000. It will be reconstituted on a semi-annual basis, while the weight of each constituent will be determined based on its free-float market capitalisation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)