Below the brand new rule, the goal firm will likely be deleted from the index a day earlier than the ex-date in case of a merger. Concurrently, the burden of the acquirer if a part of the identical index will likely be elevated, and an eligible title will likely be added to the index on the identical day.
NSE Indices sought market contributors’ suggestions on the ‘remedy of merger and demerger’ within the Nifty indices final month.
“As anticipated, the modified methodology evades HDFC Ltd’s fast exclusion from Nifty 50. The inventory will solely get changed by one other contender on the ex-date of the HDFC- HDFC Bank merger,” stated Abhilash Pagaria, head of Nuvama Various & Quantitative Analysis.