Description

BSE announces reconstitution of multiple indices including BSE 500, BSE 150 Midcap, BSE 250 SmallCap, and BSE MidCap/SmallCap Select indices with additions and deletions effective September 22, 2025.

Summary

BSE has announced comprehensive reconstitution of multiple indices effective September 22, 2025. The changes include additions and deletions across 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.

Key Points

  • Reconstitution effective date: September 22, 2025
  • Multiple BSE indices affected including flagship BSE 500 and specialized sector indices
  • Siemens Energy India Ltd being added to multiple indices (BSE 500, BSE 150 Midcap, BSE 250 LargeMidCap, BSE 400 MidsmallCap)
  • Significant changes in BSE MidCap Select Index with 6 additions and 6 deletions
  • Extensive reconstitution of BSE SmallCap Select Index with 18 additions and 18 deletions
  • Aditya Birla Fashion moving from midcap to smallcap category

Regulatory Changes

No regulatory framework changes. This is a routine index reconstitution based on market capitalization, liquidity, and other index methodology criteria.

Compliance Requirements

  • Index fund managers must adjust portfolios to reflect new index compositions
  • Passive funds tracking these indices must execute necessary trades before effective date
  • Market participants should note changes for trading and investment strategies
  • No specific compliance actions required for listed companies

Important Dates

  • September 22, 2025: Effective date for all index reconstitution changes
  • Index funds typically execute rebalancing trades in the days leading up to effective date

Impact Assessment

Market Impact: Medium - Index reconstitutions typically drive significant trading volumes as passive funds rebalance portfolios. Companies being added to indices may see increased buying pressure, while deleted companies may face selling pressure.

Operational Impact: Low for listed companies - No direct operational requirements, but companies may experience changes in investor base and trading patterns.

Investment Impact: High for index fund managers and passive investors who must adjust holdings to maintain index tracking.

Impact Justification

High importance due to multiple major index reconstitutions affecting numerous stocks and fund flows. Medium impact as changes are routine rebalancing activities.