Germany’s benchmark DAX index, which tracks the largest listed companies on the German capital market, will undergo a reform, increasing the number of members to 40 and applying stricter rules.
Starting from September 2021, the DAX blue chip index will be expanded to include 40 members instead of the current 30. On the other hand, the second tier index MDAX will be reduced to 50 from 60, according to Qontigo, a subsidiary of Deutsche Boerse AG.
New rules also require new members to have been profitable in the past two years in order to join. Members of the DAX index have to publish audited annual results and quarterly reports, and set up an audit committee on their supervisory board, according to a statement published on Tuesday by the index operator Qontigo.
The revised rules were announced following a market consultation among more than 600 representatives of the financial industry, companies, private individuals, associations and other interest groups, said the index operator.