Asia Index, a joint venture between S&P Dow Jones Indices and BSE, has launched arbitrage rate index.

Alka Banerjee, CEO of Asia Index stated that, the S&P BSE Arbitrage Rate Index will equally weigh long positions in the Sensex and equivalent short positions in the futures contracts. It will provide market participants with a transparent benchmark to compare the performance of similar arbitrage strategies.

Furthermore, the index will be rebalanced every month, effective after the close of business, a day before the expiration of the futures contract.

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