Description

BSE Index Services announces exclusion of Kwality Walls (India) Ltd (scrip code 544622) from 30+ BSE indices including SENSEX, effective prior to market open on February 24, 2026, as the scrip did not hit lower circuit on February 19-20, 2026.

Summary

BSE Index Services Private Ltd has announced the exclusion of Kwality Walls (India) Ltd (scrip code: 544622) from BSE SENSEX and over 30 other BSE indices, effective prior to the open of trading on Tuesday, February 24, 2026. The exclusion is triggered by the company’s failure to hit the lower circuit on both February 19 and February 20, 2026, following a scheme of arrangement for demerger, as per the process outlined in earlier Notice No. 20250403-46.

Key Points

  • Kwality Walls (India) Ltd (scrip code: 544622) will be removed from BSE SENSEX and 30+ other BSE indices
  • Effective date: Prior to market open on Tuesday, February 24, 2026
  • Trigger: The scrip did not hit the lower circuit on February 19, 2026 (Thursday) or February 20, 2026 (Friday)
  • Process follows the framework for removal of spun-off scrips after a demerger scheme of arrangement
  • The action is included in the end-of-day corporate action file (*.SDE) for February 20, 2026
  • Queries can be directed to bseindex@bseindia.com

Regulatory Changes

This exclusion follows the policy established by BSE Index Services Private Ltd vide Notice No. 20250403-46, which governs the removal of spun-off scrips from BSE Indices after a demerger/scheme of arrangement. No new regulatory changes are introduced; this is an application of the existing framework.

Compliance Requirements

  • Index fund managers and ETF operators tracking any of the affected indices must rebalance portfolios to exclude Kwality Walls (India) Ltd before market open on February 24, 2026
  • Custodians and clearing members should note the update in the corporate action file (*.SDE) released on February 20, 2026
  • Clients with index-linked products should review exposure to the affected indices

Important Dates

  • February 19, 2026: Scrip did not hit lower circuit (Day 1 of trigger condition)
  • February 20, 2026: Scrip did not hit lower circuit (Day 2 of trigger condition); circular issued
  • February 20, 2026 (EOD): Corporate action file (*.SDE) updated with this exclusion
  • February 24, 2026 (Prior to market open): Effective date of exclusion from all listed BSE indices

Impact Assessment

The exclusion of Kwality Walls (India) Ltd from BSE SENSEX and over 30 major indices — including BSE 100, BSE 200, BSE 500, BSE FMCG, BSE India Manufacturing Index, BSE ALLCAP, BSE LARGECAP, BSE SENSEX 50, and multiple thematic/factor indices — will have a broad and immediate impact:

  • Passive funds and ETFs tracking these indices must sell their holdings in Kwality Walls (India) Ltd before February 24, 2026 open, which may create selling pressure on the stock
  • FMCG and sectoral indices such as BSE FAST MOVING CONSUMER GOODS will see a constituent change requiring reweighting
  • Factor and thematic indices (Low Volatility, Quality, Equal Weight, ESG) will also require rebalancing
  • The action is a direct consequence of the demerger process; the spun-off scrip’s price behavior (not hitting lower circuit) triggered the scheduled removal per existing policy
  • Market participants holding index-linked derivatives or structured products referencing any of the 30+ affected indices should assess their positions ahead of the February 24 effective date

Impact Justification

Exclusion of a stock from SENSEX and 30+ major BSE indices including BSE 100, BSE 200, BSE 500, and sectoral indices is a high-impact event affecting index-tracking funds, ETFs, and passive investors with immediate effective date of February 24, 2026.