INQQ Eligibility Criteria

To be considered for inclusion in the Index, the following criteria must be met:

1. India  The primary criteria for selecting a company for inclusion in the Index is that the company derives a majority of its revenue from Internet & Ecommerce activities in India.
2. Equity Securities.  Only publicly issued common equity securities are eligible for inclusion in the Index. Debt or quasi-debt securities, such as convertible securities, are not eligible for inclusion.
3. ADRs. Exchange-traded American Depository Receipts (ADR’s), American Depository Shares (ADSs), Global Depository Receipts (GDR’s), and International Depository Receipts (IDR’s) are eligible for inclusion in the Index.
4. Market Capitalization. The Index will include equity securities of companies of all capitalizations. Constituents must have a free-float adjusted market capitalization of USD $300 Million or greater for initial inclusion in the Index. A free-float adjusted USD $200 Million minimum is required for ongoing Index inclusion.
5. Liquidity. To ensure adequate liquidity, constituents must have three (3) month average daily turnover of at least USD $1 million USD.
6. Foreign Ownership Restrictions. Companies traded in markets with restrictions on foreign ownership may be excluded from the Index.

Index Maintenance is the responsibility of the Index Administrator, Solactive AG. Index maintenance includes monitoring and implementing any adjustments, additions and deletions to the Index as per this Index methodology and any adjustments, additions and deletions due to corporate actions.

 

Additions to the Index will be made at a semi-annual rebalance on the third Friday of June or December. Any addition will be funded on a pro-rata basis from the remainder of the Index, net of any deletions.

Deletions

A constituent will be deleted from the Index immediately due to bankruptcy, acquisition, delisting or merger of the company by or into another company, spin-offs, tender offers or other similar corporate actions. At each quarter end, any security which has been continuously suspended or halted since the prior quarter will be deleted from the Index at zero value. In the case of such deletions, including any relisting of suspended constituents, no replacements will be made until the annual rebalance. Any proceeds resulting from the deletions will be applied on a pro-rata basis over the remainder of the Index, net of any additions.

Index Reconstitution and Semi-Annual Rebalance

Index Reconstitution is the responsibility of the Index Administrator and is performed semi-annually in June and December based on data as of the last business day in May and November respectively. Index Reconstitution includes:

1. Additions to the Index. New constituents will be added to the Index if they meet the eligibility requirements as defined above under Eligibility Criteria. Any additions will be funded on a pro-rata basis from the remainder of the Index, net of deletions.
2. Deletions from the Index. Constituents will be deleted from the Index if they no longer meet the eligibility requirements as defined above under Eligibility Criteria with one exception. Constituents that fall below the initial capitalization minimum of USD $300 Million will be retained unless their capitalization falls below the minimum of USD $200 Million. Constituents falling below the minimum of USD $200 Million will be deleted. Any proceeds resulting from the deletions will be applied on a pro-rata basis over the remainder of the Index, net of additions.
3. Rebalancing. The Index will be rebalanced to accommodate any additions or deletions to the Index as described above and to enforce the target weights as described above under Index Construction.