New Delhi: BSE Index Services Pvt Ltd, a wholly owned subsidiary of BSE, has launched the ‘BSE Saatvik 100’, introducing what it describes as India’s first equity index based on Saatvik principles — a philosophy rooted in ancient Indian traditions that emphasises purity, balance, non-violence, ethical conduct and harmony with nature.
The launch marks the arrival of a new category in India’s rapidly evolving passive investment landscape, where thematic indices are increasingly designed around investor preferences that go beyond conventional financial measures such as market capitalisation, sector exposure or corporate earnings. While environmental, social and governance (ESG) investing brought sustainability and corporate responsibility into mainstream portfolio construction, the BSE Saatvik 100 takes the idea of values-based investing a step further by incorporating cultural and philosophical principles into stock selection.
The index has been derived from the BSE 500, one of India’s broadest equity benchmarks representing nearly 90% of the listed market capitalisation of companies on the exchange. From this universe, 100 companies that satisfy the prescribed Saatvik screening methodology have been selected to form the benchmark. The index has a base value of 1,000, with June 20, 2005, as the first value date, and will be reconstituted semi-annually in June and December to ensure continued alignment with its underlying principles.
The uniqueness of the BSE Saatvik 100 lies in the fact that it attempts to merge an ancient Indian philosophical framework with a modern financial product. The concept of ‘sattva’, one of the three ‘gunas’ described in Indian philosophical texts such as the Bhagavad Gita and Upanishadic traditions, is associated with clarity, discipline, purity and constructive action. By translating these principles into an investible framework, BSE has created an index that seeks to provide investors with an avenue to align capital allocation with personal beliefs and cultural values.
Globally, the concept of values-based investing is not new. Financial markets across the world have developed faith-based and ethically screened investment products, including Shariah-compliant indices that exclude businesses such as conventional banking, alcohol and gambling, and Christian investment funds that apply biblical principles to portfolio management. ESG indices have also become a major segment of the global asset management industry, with trillions of dollars linked to sustainability-focused strategies.
Global First
However, a publicly available equity benchmark specifically constructed around the Indian Saatvik philosophy appears to be the first such index in the world. This differentiates the BSE Saatvik 100 from other ethical or religious investment products, placing it in a new niche within the global indexing ecosystem.
Speaking at the launch, Ashutosh Singh, Managing Director and Chief Executive Officer of BSE Index Services., said the new benchmark represents an important step in broadening the range of thematic indices available to investors seeking greater alignment between their investment decisions and value-based principles.
“As capital markets continue to evolve, investor preferences are increasingly extending beyond traditional financial metrics to include ethical, cultural and philosophy-driven considerations. The index represents a distinctive addition to India’s indexing landscape and provides market participants with a credible foundation for the development of passive, structured and other investment products aligned with this philosophy,” Singh said.
The BSE Saatvik 100 can serve as the underlying benchmark for a range of investment products including exchange-traded funds (ETFs), index funds and structured products. It can also be used by portfolio managers, mutual funds and institutional investors as a benchmark for strategies that seek exposure to companies complying with Saatvik principles.
The launch also comes at a time when passive investing is witnessing rapid growth in India. Lower costs, greater transparency and ease of access have led to a sharp increase in investor interest in index-linked products. According to industry estimates, assets under management in passive funds in India have expanded multiple times over the past decade, prompting exchanges and index providers to create specialised benchmarks focused on themes such as manufacturing, digital economy, sustainability, quality, momentum and other investment factors.
By introducing the Saatvik 100, BSE is not merely adding another thematic index to its portfolio but attempting to create a distinctly Indian approach to ethical investing. The benchmark reflects a wider shift in global capital markets where investors increasingly expect their money to represent not only financial aspirations but also personal convictions, cultural identity and long-held philosophical beliefs.
(Cover photo by Towfiqu barbhuiya on Unsplash)