BSE Launches New Long-Short Benchmarks for SIFs and Alternative Strategies

• BSE has introduced a new All Stock Futures benchmark and is developing additional long-short indices to cater to Specialized Investment Funds (SIFs) and alternative strategies.
• The BSE 500 All Stock Futures Index has been rolled out, with plans for 'BSE 500 Long and BSE 200 Short' and 'BSE 500 Long and BSE 150 Midcap Short' indices.
• The initiative addresses fund managers' feedback, who currently benchmark long-short and market-neutral strategies against conventional long-only indices, creating a disconnect.
• Interest in SIFs has surged due to tax advantages and the need for uncorrelated returns, especially amid concerns over valuation distortions from SIP flows and rising geopolitical risks.
• Improvements in India's derivatives ecosystem, regulatory changes, and enhanced execution services are attracting more participants, including FPIs, and boosting market liquidity.

Why It Matters: BSE is innovating with new long-short benchmarks to better serve specialized investment funds and alternative strategies.