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Index Maintenance Sub-Committee of NSE Indices Limited announces deferment of upcoming Index Rebalancing

Index Maintenance Sub-Committee of NSE Indices Limited announces deferment of upcoming Index Rebalancing

India Blooms News Service | @indiablooms | 24 Mar 2020, 03:15 pm

Mumbai/IBNS: The Index Maintenance Sub-Committee (IMSC) of NSE Indices Limited announced replacements in various equity indices as part of periodic review scheduled to come into effect from March 27, 2020 (close of March 26,2020).

The annoucement was made through press releases dated February 18, March 12 and March 19, 2020.

Considering the recent extreme market volatility, index-based market wide circuit breaker events, increased margin requirement, travel restrictions imposed in Mumbai and other cities in India and in order to provide support to various stakeholders, it has been decided to defer the upcoming index rebalancing (including quarterly rebalancing of shares outstanding and investible weight factors) earlier scheduled to come into effect from March 27, 2020 (close of March 26, 2020) until further notice.

However, the changes required to ensure ETFs/Index Funds’ compliance with SEBI Portfolio Concentration Norms related to index constituent impact cost criteria, maximum weight of top stock and top three stocks within the index will be applied effective March 27, 2020 (close of March 26, 2020).

The NSE has said it will continue to monitor market conditions and will announce the revised date of implementation of index rebalancing changes by providing two weeks notice. 

Gayatri Projects Ltd (GAYAPROJ) has been exlcuded  and Gujarat Fluorochemicals Ltd. (FLUOROCHEM) has been includedas per replacement in NIFTY 500, NIFTY Smallcap 250 and NIFTY MidSmallcap 400 to comply with index constituent impact criteria as mentioned above. 

The change will be with effect from March 27, 2020.