Description

BSE announces monthly reconstitution of BSE IPO and BSE SME IPO Indices, with 13 stocks being dropped from BSE IPO Index and 11 stocks from BSE SME IPO Index, effective January 19, 2026.

Summary

BSE Index Services Private Limited has announced the monthly reconstitution results for BSE IPO and BSE SME IPO Indices. A total of 24 securities will be dropped from these indices, with 13 stocks being removed from the BSE IPO Index and 11 stocks from the BSE SME IPO Index. The reconstitution will become effective at market open on Monday, January 19, 2026.

Key Points

  • Monthly reconstitution of BSE IPO and BSE SME IPO Indices announced
  • 13 stocks to be dropped from BSE IPO Index
  • 11 stocks to be dropped from BSE SME IPO Index
  • Reconstitution actions included in the end-of-day corporate action file (*.SDE)
  • Queries can be directed to bseindex@bseindia.com

Regulatory Changes

No regulatory changes. This is a routine monthly index maintenance activity.

Compliance Requirements

No specific compliance requirements for market participants. Index fund managers and passive investors tracking these indices should note the changes for portfolio rebalancing purposes.

Important Dates

  • Notice Date: January 9, 2026
  • Effective Date: January 19, 2026 (at market open)
  • Corporate Action File Update: January 9, 2026 (end-of-day)

Impact Assessment

Market Impact: Medium - The reconstitution will affect passive funds and ETFs tracking the BSE IPO and BSE SME IPO Indices. The removal of 24 securities may trigger sell pressure from index funds that need to rebalance their portfolios before the effective date.

Affected Securities: Companies being dropped from the indices may experience reduced institutional ownership and potentially lower liquidity as passive funds divest their holdings. The BSE IPO Index will see removal of larger IPO companies including International Gemmological Institute India Limited, Dam Capital Advisors Limited, and Transrail Lighting Limited, while the BSE SME IPO Index will drop smaller SME listings.

Investor Impact: Passive investors and fund managers tracking these indices need to adjust their portfolios accordingly. Active traders may find short-term trading opportunities around the reconstitution date.

Impact Justification

Routine monthly index reconstitution affecting passive index funds and ETFs tracking these indices. Limited broader market impact but important for affected securities.