Description

Tata Motors Ltd will be excluded from BSE SENSEX and 27 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 27 other BSE indices effective prior to the open of trading on Monday, November 17, 2025. This exclusion follows the process for removal of spun-off scrip from BSE Indices in the event of a scheme of arrangement for demerger, as the company did not hit the lower circuit on November 12 and 13, 2025.

Key Points

  • Tata Motors Ltd (Scrip code: 544569) to be excluded from 28 BSE indices
  • Exclusion effective prior to market open on November 17, 2025
  • Action triggered as stock did not hit lower circuit on November 12-13, 2025
  • Process follows previously announced demerger and spun-off scrip removal guidelines (Notice No: 20250403-46)
  • Corporate action included in end-of-day corporate action file (*.SDE)

Regulatory Changes

This action implements the previously announced process (Notice No: 20250403-46) for removal of spun-off scrip from BSE Indices following a scheme of arrangement for demerger. The removal is contingent on the stock not hitting lower circuit limits on specified monitoring days.

Compliance Requirements

  • Index-tracking funds and ETFs must rebalance portfolios to exclude Tata Motors Ltd
  • Market participants should adjust their index-linked positions before November 17, 2025
  • Portfolio managers tracking these indices need to reallocate weights among remaining constituents
  • Queries should be directed to bseindex@bseindia.com

Important Dates

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

Impact Assessment

Market Impact: High - The exclusion of Tata Motors from BSE SENSEX, India’s flagship index, and 27 other indices will trigger significant portfolio rebalancing. Index-tracking funds, ETFs, and passive investment vehicles will need to sell their Tata Motors holdings and redistribute weights among remaining constituents.

Affected Indices: 28 indices including major benchmarks:

  • BSE SENSEX (flagship index)
  • BSE 100, BSE 200, BSE 500, BSE 1000
  • Sectoral indices: BSE AUTO, BSE CONSUMER DISCRETIONARY, BSE INDIA MANUFACTURING INDEX
  • Thematic indices: BSE PREMIUM CONSUMPTION, BSE SELECT BUSINESS GROUPS
  • Various largecap, multi-cap, and equal-weight variants

Operational Impact: Fund managers must execute rebalancing trades, potentially creating short-term volatility. The removal from SENSEX is particularly significant given its role as India’s premier equity benchmark tracked globally.

Impact Justification

Removal of major constituent from flagship BSE SENSEX and 27 other indices will impact index-tracking funds, ETFs, and portfolio rebalancing across the market