Description

SKF India (Industrial) Ltd will be removed from several BSE indices including BSE 500, BSE Capital Goods, and BSE Smallcap effective December 12, 2025, following the demerger scheme process.

Summary

BSE Index Services Private Ltd announced that SKF India (Industrial) Ltd (Scrip code: 544572) will be excluded from multiple BSE indices effective prior to the open of trading on Friday, December 12, 2025. The exclusion follows the company’s failure to hit lower circuit limits on December 9 and 10, 2025, as part of the established process for removal of spun-off scrips following a demerger scheme of arrangement. This action has been included in the end-of-day corporate action file.

Key Points

  • SKF India (Industrial) Ltd (Scrip code: 544572) to be removed from 11 BSE indices
  • Exclusion effective prior to market open on December 12, 2025
  • Removal triggered as stock did not hit lower circuit on December 9 and 10, 2025
  • Process follows BSE’s established demerger scheme guidelines announced via Notice No: 20250403-46
  • Corporate action included in end-of-day SDE file

Regulatory Changes

No new regulatory changes. This action follows the existing process for removal of spun-off scrips from BSE Indices in the event of a scheme of arrangement for demerger, as previously announced in Notice No: 20250403-46 dated April 3, 2025.

Compliance Requirements

  • Index fund managers and passive investors tracking affected indices must rebalance portfolios to exclude SKF India (Industrial) Ltd
  • Market participants should note the corporate action reflected in the SDE file
  • Queries should be directed to bseindex@bseindia.com

Important Dates

  • December 9, 2025: First observation day - stock did not hit lower circuit
  • December 10, 2025: Second observation day - stock did not hit lower circuit
  • December 12, 2025: Effective exclusion date (prior to market open)

Impact Assessment

Market Impact: The exclusion from 11 major BSE indices will affect index funds and ETFs tracking these benchmarks, requiring them to sell their holdings in SKF India (Industrial) Ltd. This may create selling pressure on the stock as passive funds rebalance their portfolios.

Indices Affected:

  1. BSE 500
  2. BSE Capital Goods
  3. BSE Smallcap
  4. BSE Allcap
  5. BSE Industrials
  6. BSE Smallcap Select Index
  7. BSE 250 Smallcap Index
  8. BSE 400 Midsmallcap Index
  9. BSE 1000
  10. BSE 1000 Multicap Equal Size Weighted (25%)
  11. BSE Midsmallcap

Operational Impact: Investors and fund managers need to adjust their strategies and portfolios accordingly. The stock’s liquidity may be affected post-exclusion as passive investment flows are redirected away from the security.

Impact Justification

Index exclusion affects passive funds tracking these indices and may impact liquidity, but follows established demerger process with advance notice