The National Stock Exchange (NSE) on February 24, notified of the changes in eligibility criteria of NIFTY equity indices and replacement of stocks in various indices as part of its periodic review. These changes shall become effective from March 31, 2022 (close of March 30, 2022).
As per the existing criteria, the minimum listing history requirement in case of new listing and companies traded subsequent to scheme of arrangement for corporate events requires constituents to have a minimum listing history of three months. This has now been reduced to minimum listing history of one month.
“The change in eligibility criteria would be applicable with an immediate effect to all NIFTY equity indices which currently mandates requirement of minimum of 3 months of listing for inclusion in the index”, the release from NSE said.
The release also notified about the exclusion of Indian Oil Corporation Ltd (IOCL) from Nifty50, which will be replaced by Apollo Hospitals Enterprise Ltd.
This replacement will also be applicable to Nifty50 Equal Weight Index.
The stock exchange in its periodic review has also decided to change the constituents of Nifty Next50 index by excluding companies such as Apollo Hospitals Enterprise Ltd., Aurobindo Pharma Ltd, Hindustan Petroleum Corporation Ltd, Indraprastha Gas Ltd, Jindal Steel & Power Ltd and Yes Bank Ltd.
The above companies will be replaced by FSN E-Commerce Ventures Ltd., Indian Oil Corporation Ltd., MindTree Ltd, One 97 Communications Ltd., SRF Ltd and Zomato Ltd.
Changes were made to other Nifty indices also, including Nifty100, Nifty500 and other broader indices as well as its sectoral indices that include Nifty Auto, Nifty Bank, Nifty Financial Services, Nifty Oil and Gas, Nifty Metal and Nifty Healthcare among others.
The exchange did not make any changes in NIFTY Consumer Durables, NIFTY FMCG, NIFTY IT, NIFTY Media, NIFTY Pharma, NIFTY Private Bank and NIFTY Realty indices.
“The replacements arising out of periodic reconstitution of thematic indices will be announced in due course," the release added.
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