ECONOMY FINANCE&BANKING

Stock Exchange introduces new rules for BET, BET-TR indices, watchlist of eligible companies

The Bucharest Stock Exchange (BVB) introduces a new set of rules for the BET and BET-TR indices, so that they reflect the performance of the most traded companies listed on BVB, as well as a watchlist of eligible companies.

The Stock Exchange Board of Governors approved in its Wednesday sitting the change of the management rules of the BET and BET-TR indices following a similar decision of the BVB Index Committee.

Thus, the BET and BET-TR indices will have a variable number of constituents, as opposed to the currently fixed structure. The minimum number of companies will be 10 and the maximum 15.

A watchlist of eligible companies will also be set in place for companies to be monitored with a view to their inclusion in the BET and BET-TR. The list will be decided at the periodic meetings taking place in March and September every year. The companies will stay on the list for at least 6 months prior to the final decision to be included in the index. The first watchlist will be announced to the market within the shortest time and will stay in effect until the Index Committee meeting in March 2017.

The criteria for inclusion in the two indices remain the same. BET and BET-TR will include the most traded companies which fulfill the reporting and investor relations (IR) requirements, as implemented since January 2015. The specific reporting and IR criteria are: reporting according to IFRS standards, according to the legal requirements in force; simultaneous reporting in English and Romanian, for current and periodic reports, submitted to the Bucharest Stock Exchange; at least one quarterly event dedicated to investors and analysts (conference calls or analyst and investor meetings), following the release of the financial results, organized within a reasonable timeframe.

The composition and number of companies in the indices can be changed twice a year (at the March and September meetings), but also in special situations, such as the listing of new companies.

In the future, the companies’ compliance with the BVB Corporate Governance Code will be also taken into consideration as an additional criterion for the companies’ inclusion in the indices.

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