Introduction
The National Stock Exchange (NSE) says, "a stock market
index is a measure of the relative value of a group of stocks in
numerical terms. As the stocks within an index change value, the
index value changes. An index is important to measure the
performance of investments against a relevant market
index."1
Stock Market Indices are maintained by Index Provider(s) (IP).
The most popular Indian stock market indices are Nifty and Sensex.
These are provided respectively by NSE Indices Limited and the Asia
Index Private Limited, a 50-50 partnership between Bombay Stock
Exchange and S&P Dow Jones Indices. A few other global IPs are
also active in India.
Nifty 50 and the Sensex, which are the equity market indices
serve as benchmarks or market performance indicators and the
investors rely on these indices for making their decisions.
Unfortunately, there are no extant laws regulating the indice
provider and the indice providing business as on date.
