Mumbai, June 23: The Over The Counter Exchange of India (OTCEI) is planning to create a separate index for its permitted equity segment comprising 40 actively traded stocks in the permitted section. It will be called the OTC-40 Index.

The index will be finalised only after trading in the permitted segment commences, the tentative date for which is July 3. The exchange has set up a three-member team including the exchange managing director M Pushpangadhan, and one representative each from Life Insurance Corporation of India (LIC) and General Insurance Corporation (GIC). Ajay Shah, who was instrumental in the creation of the NSE-50 Index, has been roped in as a consultant to work on the new index. The team will also look into revising the index occasionally.

The exchange has also got the board approval to go ahead with the construction of the new index for the listed segment which will be based on the market capitalisation of the top 25 companies.

The present composite index comprises all the listed securities and is calculated simply by taking into account the daily traded prices (closing buy quote) of the stocks and not the market capitalisation.

The 25 stocks include Aryan Pesticides, ACP Industries, IIS Infotech Limited, Kripa Chemicals, Maxwell Apparel Industries and Vera Laboratories Limited. These 25 companies attribute for nearly 70 per cent of the market capitalisation on the exchange.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.