Deutsche Boerse may allow TecDax members to join other indexes

FRANKFURT (Reuters) - Germany's stock market operator is looking into changes that would allow members of its TecDax (.TECDAX) technology index to also join other indexes, such as the midcap MDAX, which are more popular with index-tracking funds.

Under the proposals published on Deutsche Boerse's (DB1Gn.DE) website, DAX blue-chips such as software giant SAP (SAPG.DE) could also enter the TecDax, while TecDax members such as United Internet (UTDI.DE) could qualify for the MDAX or small-cap SDAX.

So far, companies can only apply to one index.

The changes would significantly increase the market capitalisation of the TecDax, as it would allow DAX members such as telecoms group Deutsche Telekom (DTEGn.DE) to join.

To avoid crowding out smaller MDAX and SDAX members, Deutsche Boerse is considering increasing the number of constituents for the midcap and smallcap indexes to 60 from 50.

Deutsche Boerse is currently conducting a market consultation and expects to announce a decision on the future of the indexes around April 20. If ratified, the new rules would apply from Sept. 24.

Deutsche Boerse's definition of "Tech" includes suppliers of software, telecoms and Internet services, semiconductors, electronic components, biotechnology, renewable energy and advanced industrial equipment.

(Reporting by Arno Schuetze; Editing by Mark Potter)