Description

BSE announces changes to multiple indices including BSE 500, BSE 150 Midcap, BSE 250 SmallCap, BSE MidCap Select, and BSE SmallCap Select indices effective September 22, 2025.

Summary

BSE has announced the reconstitution of multiple indices effective September 22, 2025. The changes affect BSE 500, BSE 150 Midcap Index, BSE 250 SmallCap Index, BSE 250 LargeMidCap Index, BSE 400 MidsmallCap Index, BSE MidCap Select Index, BSE SmallCap Select Index, and BSE AllCap indices. The reconstitution involves adding and dropping various stocks to reflect current market capitalizations and index criteria.

Key Points

  • Siemens Energy India Ltd (544390) being added to BSE 500, BSE 150 Midcap, BSE 250 LargeMidCap, BSE 400 MidsmallCap, and BSE AllCap indices
  • Anupam Rasayan India Ltd (543275) being dropped from BSE 500, BSE 250 SmallCap, and BSE 400 MidsmallCap indices
  • Aditya Birla Fashion and Retail Ltd (535755) moving from BSE 150 Midcap to BSE 250 SmallCap Index
  • BSE MidCap Select Index adding 6 stocks: Fortis Healthcare, Max Financial Services, GMR Airports, One 97 Communications, Page Industries, and Torrent Power
  • BSE SmallCap Select Index undergoing significant reconstitution with 18 additions and 18 deletions
  • All changes are effective from September 22, 2025

Regulatory Changes

No regulatory framework changes. This is a routine index reconstitution based on existing index maintenance guidelines and methodology.

Compliance Requirements

  • Index fund managers and ETF providers must rebalance their portfolios to match the new index composition
  • Passive investment vehicles tracking these indices need to execute trades on or before the effective date
  • Market participants should update their index-linked products and derivative contracts accordingly

Important Dates

  • Effective Date: September 22, 2025 - All index changes will be implemented

Impact Assessment

Market Impact: Index reconstitution typically leads to increased trading volumes in affected stocks as index funds rebalance. Stocks being added often experience buying pressure, while dropped stocks may face selling pressure from passive funds.

Operational Impact:

  • Fund managers tracking these indices must execute rebalancing trades
  • Increased volatility expected in constituent stocks around the effective date
  • Particularly significant impact on BSE SmallCap Select Index with 18 additions and 18 deletions

Investor Impact: Investors in index funds and ETFs will see automatic portfolio adjustments reflecting the new composition. The movement of Siemens Energy India into multiple large and midcap indices suggests increased institutional ownership ahead.

Impact Justification

Index reconstitution affects passive fund rebalancing and trading volumes for included/excluded stocks. Medium impact as changes are routine quarterly/periodic adjustments across multiple BSE indices.