Which stocks are changing in Nifty from Sep 2022 onwards?

Introduction 

The Indian stock markets are among the oldest in Asia and have attracted millions of investors over the decades. However, the pace of investing and the number of new investors and traders joining the markets today is unprecedented. For such high volumes of trades and high volatility of the markets, there was an acute need for proper regulations and a code of conduct to be followed by each participant from the very start. Viewing this need, the Government of India had set up SEBI and other regulatory bodies to govern the investing and trading of stocks and other related instruments on the stock exchanges. These regulatory bodies also decide the mechanism or the basis for which stocks can be listed on the exchanges or may be removed later.

Recently, it was announced that the NSE would be undergoing an alteration of the available stocks on their various indices. Below is the list of incoming and outgoing stocks and the broad mechanism followed by the stock exchange to readjust their stock lists. 

How and why are stocks on NSE restructured? 

The list of stocks that are available on various indices on the National Stock Exchange (NSE) is based on the underlying methodology for each such index. As per the policy of SEBI, this list is to be reviewed every 6 months. The latest revision is scheduled on September 30. The conditions or situations that warrant the change in the list of stocks are detailed below.

1. When the constituent on the index is moved to BZ/SZ category
2. When a constituent on the index undergoes any changes in terms of the stock split, merger, spin-off, delisting, capital restructuring, etc., or any other case that may lead to changes in the stock prices.
3. When the removal of the stock from the respective indices is in the interests of the investors at large or the stakeholders which will be determined by the Index Maintenance Sub-Committee (Equity) in any of the following cases,
   1. If there are adverse regulatory findings, or,
   2. Any order or governance-related issues 
4. In case when the trading permission for a particular constituent is withdrawn from the F&O segment (provided being able to be traded on the said segment is the primary condition for listing)
5. When the security has been suspended on account of any reason for trading at the NSE from the Capital Market or the SME Emerge.

Furthermore, the exchange will have to provide a notification for the change in the broad market indices at least 4 weeks prior to the scheduled change. In the case of other indices, a notice of 5 working days has to be provided to all the relevant market participants in the manner as directed by SEBI. Such notice shall be applicable for both scheduled or additional readjustment of the indices.

Read More : How to invest in Nifty directly?

What are the changes in the list of stocks in the NSE indices from Sept 2022? 

The changes that are about to be reflected in the different indices on NSE are tabled below.

1. Nifty 50

2. Nifty Next 50

3. Nifty 500 

4. Nifty 100 

5. Nifty MidCap Select 

6. Nifty Midcap 150 

7. Nifty SmallCap 100

8. Nifty Auto

9. Nifty IT 

10. Nifty Pharm

Conclusion 

The reshuffling of NIFTY and other indices of the NSE are a routine procedure that is done periodically by assessing the respective indices and the potential stocks to be included in the index. The periodicity of the reshuffling depends on the individual indices as some indices are restructured quarterly while a majority of them are rejigged on a semi-annual basis. 

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