Description

BSE Index Services announces exclusion of Kwality Walls (India) Ltd (scrip code 544622) from BSE SENSEX and 29 other BSE indices effective prior to market open on February 24, 2026, following failure to 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 29 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 Notice No. 20250403-46.

Key Points

  • Kwality Walls (India) Ltd (scrip code: 544622) will be removed from 30 BSE indices effective February 24, 2026
  • The exclusion is due to the stock not hitting the lower circuit on February 19 and February 20, 2026 post-demerger listing
  • The process follows rules announced in Notice No. 20250403-46 regarding removal of spun-off scrips from BSE indices after a scheme of arrangement for demerger
  • This corporate action has been included in the end-of-day corporate action file (*.SDE) for February 20, 2026
  • Queries to be directed to bseindex@bseindia.com

Regulatory Changes

No new regulatory rules are introduced. This action is pursuant to the existing framework announced by BSE Index Services Private Ltd (formerly Asia Index Pvt. Ltd.) via Notice No. 20250403-46, which governs the removal of spun-off scrips from BSE indices following a demerger scheme. The trigger condition — failure to hit the lower circuit on both days post-listing — has been met, activating the exclusion.

Compliance Requirements

  • Index-tracking funds, ETFs, and passive investment vehicles benchmarked to any of the 30 affected indices must rebalance their portfolios to exclude Kwality Walls (India) Ltd before market open on February 24, 2026
  • Portfolio managers and fund houses should update their index compositions accordingly
  • Market participants should refer to the updated end-of-day corporate action file (*.SDE) for official confirmation

Important Dates

  • February 19, 2026: First day Kwality Walls (India) Ltd did not hit the lower circuit (trigger condition day 1)
  • February 20, 2026: Second day without lower circuit hit (trigger condition day 2); circular issued
  • February 24, 2026 (before market open): Effective date of exclusion from all 30 BSE indices

Impact Assessment

Affected Indices (30 total): BSE SENSEX, BSE 100, BSE 200, BSE 500, BSE FAST MOVING CONSUMER GOODS, BSE INDIA MANUFACTURING INDEX, BSE ALLCAP, BSE LARGECAP, BSE SENSEX 50, BSE 100 ESG INDEX, BSE 250 LARGEMIDCAP INDEX, BSE LOW VOLATILITY INDEX, BSE 100 LARGECAP TMC, BSE SENSEX SIXTY, BSE SENSEX SIXTY 65:35, BSE 200 EQUAL WEIGHT, BSE SENSEX EQUAL WEIGHT, BSE INDIA SECTOR LEADERS, BSE 1000, BSE 1000 MULTICAP EQUAL SIZE WEIGHTED (25%), BSE INDIA 150, BSE 500 LOW VOLATILITY 50, BSE MULTICAP CONSUMPTION (50:30:20), BSE LARGECAP 100 LOW VOLATILITY 30, BSE LARGECAP 100 QUALITY 30, BSE 500 EQUAL WEIGHT, BSE ALL DERIVATIVE STOCKS, BSE LARGEMIDCAP, BSE SENSEX 50 TMC

Market Impact: The exclusion from the flagship BSE SENSEX and 29 other indices will force significant rebalancing by passive funds and ETFs tracking these benchmarks, likely generating elevated trading volumes in Kwality Walls (India) Ltd leading up to February 24, 2026. The stock may face selling pressure as index funds divest their holdings to match the new index composition. The FMCG sector-specific index removal further underscores the company’s separation from its parent entity post-demerger.

Impact Justification

Removal of a constituent from BSE SENSEX and 29 other major indices triggers mandatory rebalancing by index-tracking funds and ETFs, creating significant trading activity and price impact for the affected stock.