Deutsche Boerse has proposed that the number of companies included in Germany's blue-chip DAX. GDAXI index should rise to 40 from 30.
In a set of proposals, which are being put forward to investors in a consultation, the exchange operator advises for tougher conditions for membership and suggests reducing the number of constituents in the mid-cap index .MDAXI to 50 from 60.
The exchange operator wants to toughen corporate governance rules in the wake of the Wirecard WDIG.DE scandal and has proposed banning companies from the DAX if they fail to submit their quarterly figures on time. Companies where sales of controversial weapons make up more than 10% of sales should also be excluded from the DAX selection indices, Deutsche Boerse said.
Investors now have until November 4, 2020 to voice their opinions on the proposal. Deutsche Boerse said it would publish the results of the consultation, as well as any decision on changes to the index rules, by November 23, 2020.
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