BSE launches 'BSE Realty Index'

In keeping with its tradition of introducing new products to meet the needs of investors and in recognition of the growing importance of the real estate sector in the Indian economy, BSE announces the launch of BSE Realty Index.

Fundamental changes are taking place in this sector in India. The demand for real estate in the country, both residential and commercial, has registered strong growth over the past three years and Indian cities have become attractive investment destinations for international real estate players.

The market capitalisation of the real estate sector in India is just 4.2% of the total market capitalisation, well below the global norm of approximately 15%, reflecting the headroom available for growth of this sector.

BSE has led from the front so far as development of index products is concerned. Launched in 1986, SENSEX, the flagship of the BSE index family, was the first equity index in Indian capital markets. Tracked globally, SENSEX today is universally viewed as a proxy for the Indian Capital markets. Over the years, BSE has launched several index products to cater to the needs of market participants. BSE also pioneered the concept of free-float methodology for index calculation in India by shifting all its indices to this global best practice.

Salient features of BSE Realty index are as follows:

The index would be calculated and disseminated on a real time basis through BSE's trading terminal BOLT, BSE website and datafeed vendors effective July 10, 2007.

Kalyan S. Bose
Head – Corporate Affairs

July 9, 2007