Description

BSE announces comprehensive reconstitution of multiple indices including BSE 500, MidCap Select, and SmallCap Select with significant additions and deletions.

Summary

BSE has announced comprehensive reconstitution of multiple indices effective September 22, 2025. The changes affect BSE 500, BSE 150 MidCap, BSE 250 SmallCap, BSE 250 LargeMidCap, BSE 400 MidSmallCap, BSE MidCap Select, BSE SmallCap Select, and BSE AllCap indices. Key additions include Siemens Energy India Ltd across multiple indices, while significant deletions include Anupam Rasayan India Ltd from several indices.

Key Points

  • Effective date for all index changes: September 22, 2025
  • Siemens Energy India Ltd (544390) being added to BSE 500, BSE 150 MidCap, BSE 250 LargeMidCap, and BSE 400 MidSmallCap indices
  • Anupam Rasayan India Ltd (543275) being removed from BSE 500, BSE 250 SmallCap, and BSE 400 MidSmallCap indices
  • Major reshuffling in BSE MidCap Select Index with 6 additions and 6 deletions
  • Extensive changes in BSE SmallCap Select Index with 18 additions and 18 deletions
  • Aditya Birla Fashion and Retail Ltd (535755) moving from MidCap to SmallCap category

Regulatory Changes

No regulatory framework changes, but index methodology implementation affecting constituent selection and weighting across multiple BSE indices.

Compliance Requirements

  • Index fund managers must rebalance portfolios to reflect new constituents
  • Passive investment vehicles tracking these indices need to execute necessary trades
  • Market participants should note liquidity implications during rebalancing period

Important Dates

  • September 22, 2025: Effective date for all index reconstitution changes across BSE 500, MidCap, SmallCap, and specialized indices

Impact Assessment

High market impact expected due to:

  • Large-scale portfolio rebalancing by index funds and ETFs
  • Potential price movements in added/deleted stocks due to forced buying/selling
  • Liquidity concentration changes affecting trading patterns
  • Siemens Energy India Ltd likely to see increased institutional demand
  • Deleted stocks may face selling pressure from passive funds
  • Cross-category movements (MidCap to SmallCap) affecting stock classification and investor base

Impact Justification

Major index reconstitution affecting multiple BSE indices will impact passive fund flows and portfolio rebalancing activities