Description

Tata Motors Ltd will be removed from BSE SENSEX and 28 other BSE indices effective November 17, 2025, following the demerger scheme of arrangement process.

Summary

BSE Index Services Private Ltd has announced that Tata Motors Ltd (Scrip code: 544569) will be excluded from BSE SENSEX and 28 other BSE indices effective prior to market opening on Monday, November 17, 2025. This exclusion follows the company’s demerger scheme of arrangement process. The decision was triggered as the stock did not hit the lower circuit on November 12 and November 13, 2025, as per the removal process outlined in Notice No: 20250403-46.

Key Points

  • Tata Motors Ltd (Scrip code: 544569) to be removed from 29 BSE indices
  • Exclusion effective before trading begins on November 17, 2025
  • Removal follows demerger scheme of arrangement guidelines
  • Stock did not hit lower circuit on November 12-13, 2025, triggering the exclusion process
  • Action included in end-of-day corporate action file (*.SDE)
  • Most notably affects BSE SENSEX, India’s premier benchmark index

Regulatory Changes

This action implements the previously announced process (Notice No: 20250403-46) for removal of spun-off scrips from BSE Indices in the event of a scheme of arrangement for demerger. The removal mechanism is based on circuit limit triggers post-demerger listing.

Compliance Requirements

  • Index fund managers and ETF providers tracking affected indices must rebalance portfolios to exclude Tata Motors Ltd
  • Passive investment strategies must adjust holdings before November 17, 2025
  • Market participants should review positions in index-linked products
  • Corporate action file (*.SDE) to be processed for system updates
  • Queries to be directed to bseindex@bseindia.com

Important Dates

  • November 12, 2025: First observation day for lower circuit (not hit)
  • November 13, 2025: Second observation day for lower circuit (not hit)
  • November 17, 2025: Effective exclusion date from all listed indices (prior to market open)

Impact Assessment

Market Impact: High - The removal of Tata Motors from BSE SENSEX, India’s most tracked equity index, will have significant implications for passive investment products. Index funds and ETFs tracking SENSEX and the other 28 affected indices will need to sell their Tata Motors holdings, potentially creating selling pressure on the stock.

Operational Impact: Portfolio rebalancing required across multiple index products. The exclusion affects major index categories including SENSEX, BSE 100, BSE 200, BSE 500, and sector-specific indices like BSE AUTO and BSE INDIA MANUFACTURING INDEX.

Investor Impact: Investors in index funds and ETFs tracking these 29 indices will see Tata Motors removed from their portfolios. This is a consequence of the demerger corporate action and the established index methodology for handling such events.

Affected Indices (Complete List)

  1. BSE SENSEX
  2. BSE 100
  3. BSE 200
  4. BSE 500
  5. BSE AUTO
  6. BSE INDIA MANUFACTURING INDEX
  7. BSE ALLCAP
  8. BSE CONSUMER DISCRETIONARY
  9. BSE LARGECAP
  10. BSE SENSEX 50
  11. BSE 100 ESG INDEX
  12. BSE 250 LARGEMIDCAP INDEX
  13. BSE ENHANCED VALUE INDEX
  14. BSE 100 LARGECAP TMC
  15. BSE SENSEX SIXTY
  16. BSE SENSEX SIXTY 65:35
  17. BSE 200 EQUAL WEIGHT
  18. BSE PREMIUM CONSUMPTION
  19. BSE SELECT BUSINESS GROUPS
  20. BSE SENSEX EQUAL WEIGHT
  21. BSE INDIA SECTOR LEADERS
  22. BSE 1000
  23. BSE 1000 MULTICAP EQUAL SIZE WEIGHTED (25%)
  24. BSE 500 ENHANCED VALUE 50
  25. BSE INDIA 150
  26. BSE MULTICAP CONSUMPTION (50:30:20)
  27. BSE LARGEMIDCAP
  28. BSE SENSEX 50 TMC
  29. BSE 1000 (duplicate or typo in original)

Impact Justification

Removal of a major constituent from BSE SENSEX and 28 other indices will significantly impact index funds, ETFs, and passive investment strategies tracking these indices