Direct Answer
The DSES is a rule-based measurement of Bangladeshi Shariah-compliant equity benchmark, maintained by Dhaka Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets.
What this index covers
The DSES covers Bangladeshi Shariah-compliant equity benchmark, within the Bangladesh market. Dhaka Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number.
The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target.
How constituents are weighted
Constituents are weighted by float-adjusted market capitalization. The index is built as a subset of the DSE Broad Index (DSEX) and measures Shariah-compliant stocks listed on the exchange.
The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little.
What qualifies for inclusion
Stocks must first be DSEX constituents and then pass rules-based Shariah screens. Business screens exclude items such as alcohol, gambling, pork, tobacco and conventional financials (Islamic banks and insurers excepted). Accounting screens require debt below 33% and cash plus interest bearing securities below 33% of 36 month average market value of equity, receivables below 49%, and non-permissible income other than interest below 5% of revenue.
Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does.
When the membership is revised
The methodology says compliance driven updates are applied once a month on the third Thursday, with additions made typically on that day after a parent index addition if the Shariah board finds the stock compliant. Deletions occur when the underlying index deletes. Its FAQ adds that S&P Dow Jones Indices announces changes on the third Friday, effective at the start of business on the following Monday.
Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider.
The rule that surprises people
The document provides a dividend purification ratio for investors, calculated as dividends multiplied by non-permissible revenue over total revenue. Screening uses the latest financial statement, with the annual statement preferred when quarterly, semi-annual and annual are all available. Where a company publishes both consolidated and unconsolidated balance sheets (the document names Japan and India), unconsolidated balance sheets are used by default, with pro-rata figures for subsidiaries.
References
- Dhaka Stock Exchange: Dhaka Stock Exchange, Methodology of DSEX Shariah Index (DSES), designed by S&P Dow Jones Indices, which carries no publication date. Every rule described on this page is taken from this document.
Current DSES constituents
Dhaka Stock Exchange publishes and licenses the DSES constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights.
Related reading
- All stock market indexes: how indexes are built, weighted and revised.
- Emerging Markets indexes: others covering the same region.
- Index concentration: measuring how much of an index sits in its largest holdings.
- Index rebalancing and inclusion effects: what happens to a stock when index membership changes.
Frequently Asked Questions
Who maintains the DSES?
Dhaka Stock Exchange maintains the DSES and publishes the methodology document that defines its eligibility and weighting rules.
What does the DSES measure?
It measures Bangladeshi Shariah-compliant equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself.
Where can I see the current DSES constituents?
Dhaka Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence.