NSE’s new Ahimsa Index could pave the way for ethical ETFs and index funds in India

NSE Indices Limited, the index services subsidiary of the National Stock Exchange, says its newly launched Nifty500 Ahimsa Index is expected to act as a benchmark for fund managers and support the creation of passive investment products such as exchange-traded funds, index funds and other structured investment solutions.

The thematic index tracks companies from the Nifty 500 universe that align with the principles of ‘Ahimsa,’ or non-violence, and was developed in collaboration with the Ahimsagain Foundation under its Ahimsa Investment Movement, or AIM, framework. Companies are assessed based on their products, services and overall business practices, and classified into Green, Orange and Red categories, with only Green-category companies eligible for inclusion, according to ANI.

NSE Indices said the launch reflects growing demand for thematic and responsible investment products that combine market exposure with specific sustainability and ethical considerations. ‘The index offers market participants a transparent, rules-based benchmark that integrates ethical considerations with broad-based equity market exposure,’ the company said.

The Nifty500 Ahimsa Index draws from the diversified Nifty 500 universe, allowing representation across sectors while applying the Ahimsa-based screening criteria. It is designed for investors seeking exposure to companies whose business practices align with animal welfare considerations.

The index has a base date of April 1, 2016, with a base value of 1,000. Its constituents will be reviewed and rebalanced semi-annually, with stock weights determined based on free-float market capitalisation.