Some indices are not limited in the number of constituents, and they include all shares that meet the criteria set for the index, such as the TA-AllShare, the TA-Growth and the TA-Biomed etc. Other indices can include a restricted number of shares. The name of the index usually indicates the allowed number of shares. The TA-35, for example, is designed to include only 35 shares.
However, even for these indices, under certain circumstances, the actual number of shares may deviate from the stated number restriction between index reconstitution dates. If, for example, a share is added under the "fast track" provision (for example following an IPO or dual listing), the number of shares in the index will exceed the set restriction. Conversely, events such as mergers and tender offers can lead to a share's deletion from an index in the mid-term and the number of shares will be lower than the set restriction. Upon index reconstitution, the number of constituents as designated in the number restriction will be restored.
