The India Index Services & Products Limited (IISL), an NSE group company, on Monday launched the Nifty SME EMERGE Index that represents 62 per cent of full market capitalisation of all SMEs listed on NSE's SME platform.

The announcement has been made on the day of ANI Integrated ServicesBSE -1.19 % Limited becoming the 100th firm to list on the EMERGE platform. This was the same SME, which received a massive 200 times subscription to its IPO earlier this month.

The base date for the new index is set at December 1, 2016 and base value is 1,000. The index constituents are weighted based on free float market capitalisation and the composition will be reconstituted on a quarterly basis, NSE said.

Mukesh Agarwal, CEO of IISL, said that the index is a well-diversified basket of SMEs spread across 14 sectors. It has "services, IT and consumer goods as top 3 sectors by weight. Since its inception, the index has given 39 per cent return as on November 15. As the number of SMEs listed on the EMERGE platform increases, we will launch more variants of SME indices to meet the needs of various investors,” said Agarwal. A total of 100 SME companies from various sectors like consumer goods, textiles, pharma, fertilisers, among others, have raised more than Rs 1400 crore of capital on the EMERGE platform, using the equity fund raising mechanism.