Description

STL Networks Limited will be excluded from multiple BSE indices including BSE SMALLCAP, BSE ALLCAP, and others due to not hitting lower circuit limits.

Summary

BSE Index Services Private Ltd announced the exclusion of STL Networks Limited (Scrip Code: 544395) from multiple BSE indices effective prior to trading on September 11, 2025. This action follows the company’s failure to hit lower circuit limits on September 8 and 9, 2025, as part of the process for removing spun-off scrips from indices following demerger schemes.

Key Points

  • STL Networks Limited (Scrip Code: 544395) to be excluded from 8 BSE indices
  • Exclusion effective prior to open of trading on September 11, 2025
  • Decision based on company not hitting lower circuit on September 8-9, 2025
  • Part of established process for handling spun-off scrips post-demerger
  • Action included in end-of-day corporate action file (*.SDE)

Regulatory Changes

Implementation of previously announced process (Notice No: 20250403-46) for removal of spun-off scrips from BSE Indices following scheme of arrangement for demerger.

Compliance Requirements

  • Market participants to note exclusion from affected indices
  • Fund managers tracking these indices to adjust portfolios accordingly
  • Queries to be directed to bseindex@bseindia.com

Important Dates

  • September 8, 2025: First day company did not hit lower circuit
  • September 9, 2025: Second day company did not hit lower circuit
  • September 11, 2025: Effective date of exclusion from indices (prior to market open)

Impact Assessment

The exclusion affects institutional investors and funds that track the impacted indices, potentially leading to selling pressure as passive funds rebalance. The exclusion spans across multiple market cap categories from small cap to mid-small cap indices, indicating broad impact on index-based investment strategies. Telecommunications sector representation in relevant indices will be reduced.

Impact Justification

Index exclusion affects institutional tracking and fund flows but limited to one specific stock