Description

BSE announces changes to multiple indices effective October 31, 2025, due to amalgamation of Mangalore Chemicals & Fertilizers with Paradeep Phosphates and demerger of Dalmia Bharat Sugar's refractories business. Meghna Infracon to be excluded from indices on November 4, 2025.

Summary

BSE announces changes to multiple indices effective October 31, 2025, due to two corporate actions: (1) amalgamation of Mangalore Chemicals & Fertilizers Limited (530011) with Paradeep Phosphates Limited (543530), and (2) demerger of Dalmia Bharat Sugar and Industries Limited’s (500097) refractories business into unlisted Dalmia Bharat Refractories Limited. Both companies will be excluded from all BSE indices. Additionally, Meghna Infracon Infrastructure Ltd. (538668) will be excluded from all BSE indices on November 4, 2025, due to its appearance in the GSM List.

Key Points

  • Mangalore Chemicals & Fertilizers Limited (530011) amalgamating with Paradeep Phosphates Limited (543530) effective October 31, 2025
  • Dalmia Bharat Sugar and Industries Limited (500097) demerging refractories business effective October 31, 2025; demerged entity will not be listed
  • Both stocks excluded from all BSE indices including BSE ALLCAP, BSE SMALLCAP, BSE MIDSMALLCAP, BSE 1000, BSE NEXT 500, and sector-specific indices
  • OneSource Specialty Pharma Ltd. (544292) and Aditya Birla Lifestyle Brands Ltd. (544403) added to BSE 1000, BSE 1000 MULTICAP, and BSE NEXT 500 indices
  • Teamlease Services Ltd. (539658) and NOCIL Ltd. (500730) added to BSE 250 MICROCAP index
  • Meghna Infracon Infrastructure Ltd. (538668) excluded from BSE indices on November 4, 2025, due to GSM List appearance

Regulatory Changes

No new regulatory changes. This circular implements routine index maintenance procedures in response to corporate actions (amalgamation and demerger) and surveillance measures (GSM listing).

Compliance Requirements

  • Index fund managers and passive investors tracking affected BSE indices must rebalance portfolios to reflect these changes
  • Changes included in end-of-day corporate action file (*.SDE)
  • Market participants should adjust index-linked strategies accordingly
  • Queries to be directed to bseindex@bseindia.com

Important Dates

  • October 29, 2025: Notice date
  • October 31, 2025: Effective date for amalgamation and demerger-related index changes (Mangalore Chemicals, Dalmia Bharat Sugar exclusions; OneSource Specialty Pharma, Aditya Birla Lifestyle Brands, Teamlease Services, NOCIL additions)
  • November 4, 2025: Effective date for Meghna Infracon Infrastructure exclusion from BSE indices

Impact Assessment

Market Impact: Medium. Index rebalancing affects passive funds and ETFs tracking BSE indices, requiring portfolio adjustments. The exclusion of two companies from multiple indices (ALLCAP, SMALLCAP, MIDSMALLCAP, sector indices) and addition of replacement stocks will trigger automated trading by index-tracking funds.

Affected Indices: BSE ALLCAP, BSE SMALLCAP, BSE MIDSMALLCAP, BSE COMMODITIES, BSE FAST MOVING CONSUMER GOODS, BSE 1000, BSE 1000 MULTICAP EQUAL SIZE WEIGHTED (25%), BSE NEXT 500, BSE 250 MICROCAP, BSE NEXT 250 MICROCAP, BSE CONSUMER DISCRETIONARY.

Investor Impact: Index fund investors will see automatic portfolio adjustments. No direct action required by retail investors unless holding individual stocks affected by corporate actions. The amalgamation and demerger represent structural changes to underlying companies that may affect long-term valuation and business operations.

Impact Justification

Routine index rebalancing affecting multiple BSE indices due to corporate actions. Impacts index funds and passive investors tracking these indices.