Definition
An index level equals the combined free-float market capitalisation of its members divided by the divisor. The divisor is adjusted for corporate actions and constituent changes so the index does not jump artificially when, for example, a company issues bonus shares.
Worked example
If members' free-float value totals Rs. 12 trillion and the divisor produces a KSE-100 of 120,000, the divisor keeps that ratio stable through rebalancings.