Only those companies that are listed on both BSE and NSE and have more than Rs 250 crore in market capitalisation (as on June 30, 2008) were selected. A total of 332 companies cleared this stage. Thereafter, companies with an average daily turnover of more than Rs 1 crore on NSE and BSE (combined) were considered. Only 261 companies cleared this test. Thereafter, companies that outperformed the BT 50 index over the last three years (not just for three years overall, but for each of the three years i.e. on a year-on-year basis) were considered. Only 55 companies cleared this test. Seven of these were excluded from the list as their shares were not traded on July 1, 2005 or they listed after June 30, 2008. Only 48 companies were considered for their investor friendliness.
The first and the most important parameter is the return given to investors, and it carries 35 marks (out of 100). This is measured by the share price (adjusted for rights/bonus issues, etc) appreciation over the last three years. For this, stock performance during July 1, 2005-June 30, 2008 was considered. The companies that gave more than 1,000 per cent return (total and not annualised) got full 35 marks. Else, the marks were awarded on a proportional basis.
Second is investor care and carries 65 marks, distributed over four subheads comprising: