Kolkata, Oct 6 (IANS): The Bombay Stock Exchange (BSE) in collaboration with S&P Dow Jones Indices will introduce three smart beta (factor-based) and a 1-2 thematic indices by 2015-end, an official said here on Tuesday.

"Work is under progress to introduce one-two thematic indices and at least three smart beta (factor-based) indices by December-end this year," Koel Ghosh, head of business development at Asia Index, told media persons here in an interactive session.

Asia Index is a 50:50 joint venture between Asia's oldest bourse - the BSE - and S&P Dow Jones Indices.

GHosh said the criteria for a company to qualify for the factor-based indices will be based on its profitability, liquidity and turnover. Other factors may also play a role in the selection process.

The joint-venture has already launched five thematic indices -- the manufacturing, infrastructure, PSU (Public Sector Undertakings), Shariah-complaint and CPSE (Central Public Sector Enterprises) index categories.

Thematic Indices are used to capture the impacts of various broad investment themes while the smart beta or the factor-based index will be based on the free-float mechanism.

The official said introducing equal-weighted indices is also in the pipeline.

Besides, she is hopeful that with investments poised to pour into the capital market from the Employees' Provident Fund Organisation, exchange-traded fundA(ETF) will get a boost.

ETF is an open-end investment fund traded on stock exchanges, much like stocks.

"As on July this year, the Indian ETF industry had 50 ETFs with 50 listings and assets of two billion dollars from 16 providers on two bourses," she said.