Description

Revision in the constituents of BSE BANKEX index effective from December 26, 2025, pursuant to SEBI circular and previous exchange notices.

Summary

BSE has announced a revision in the constituents of the BSE BANKEX index, effective from December 26, 2025. This change follows SEBI Circular No. HO/47/15/11(1)2025-MRD-TPD1/I/63/2025 dated October 30, 2025, and is in continuation of previous exchange notices 20251119-37 and 20251121-50.

Key Points

  • Notice Number: 20251125-55
  • Effective Date: December 26, 2025
  • Segment: Derivatives
  • Category: Trading
  • Regulatory Reference: SEBI Circular No. HO/47/15/11(1)2025-MRD-TPD1/I/63/2025 dated October 30, 2025
  • Previous Notices: 20251119-37 and 20251121-50

Regulatory Changes

This revision is implemented pursuant to SEBI guidelines on index constituent changes, ensuring compliance with updated regulatory frameworks for index management and derivative trading.

Compliance Requirements

  • Market participants trading in BSE BANKEX derivatives should note the change in index composition
  • Portfolio managers and fund houses tracking the BANKEX index need to rebalance their holdings accordingly
  • Derivative traders should adjust their positions considering the new constituent stocks from December 26, 2025

Important Dates

  • Notice Date: November 25, 2025
  • Effective Date: December 26, 2025
  • SEBI Circular Date: October 30, 2025
  • Previous Notices: November 19, 2025 (20251119-37) and November 21, 2025 (20251121-50)

Impact Assessment

The reconstitution of BSE BANKEX will impact:

  • Derivative Markets: Existing derivative contracts based on the index may need adjustments
  • Index Funds: Passive funds tracking BANKEX will need to rebalance portfolios
  • Trading Strategy: Market participants using BANKEX for hedging or speculation should review positions
  • Liquidity: Stocks being added may see increased liquidity, while removed stocks may experience reduced trading activity
  • Banking Sector Representation: The revised constituents will better reflect the current banking sector landscape

Impact Justification

Index reconstitution affects trading and derivative positions in BSE BANKEX but is a routine periodic rebalancing activity