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Saturday 25 September 2021
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REITs and InvITs can Now be Part of Nifty Indices

Real Estate Investment Trusts and Infrastructure Investment Trusts can now be included in the Nifty indices after the National Stock Exchange of India revised criteria for inclusion.

Now, all equity shares, REITs and InvITs that are traded on NSE are eligible for inclusion in the Nifty indices, the stock exchange said on August 23. So far, only equity shares but not REITs and InvITs traded on NSE could be part of Nifty indices.

The changes will be effective September 30, 2021.

NSE also revised the criteria for the Nifty Pharma, expanding the index. Now, top 20 stocks based on the six-month average free-float market cap that are eligible for NSE F&O trading will be included in the index.

At present, only the top 10 stocks based on a six-month average free-float market cap are selected.

Stocks that are available for trading in the F&O segment will be included in the index and replace the smallest index constituents that are not traded in the F&O segment. A maximum of 20 stocks can remain in the pharma index.

NSE also announced the semi-annual review of indices. Five stocks—Abott India, Alkem Labs, MRF, Petronet LNG and UBL—were excluded from Nifty Next 50 index. Bank of Baroda, Cholamandalam Investment, Jindal Steel, PI Industries and SAIL made their way into the index.




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