In today’s briefing:
- MSCI India November SAIR: Potential Changes with Big Flow & Impact
- SENSEX Index Rebalance Preview: Market Consultation on Derivative Linkage & Impact
- SEBI Indicts, Kotak Mahindra Promotes
MSCI India November SAIR: Potential Changes with Big Flow & Impact
- We see 9 potential adds and 2 potential deletes for the MSCI India Index at the November SAIR. There are a few stocks close to the cutoffs.
- Inclusion in the index will require passive trackers to buy 7-14 days of ADV on the stocks. That increases to 18-55 days of delivery volume.
- There appears to be significant pre-positioning on a lot of the potential adds and the shareholding pattern as of end September should provide a better picture.
SENSEX Index Rebalance Preview: Market Consultation on Derivative Linkage & Impact
- AIPL has commenced a market consultation on amending the index universe to only include stocks that are a part of the Futures & Options (F&O) segment of the market.
- This is likely driven by a bunch of Adani-group companies that are at the cusp of index inclusion and are not a part of the F&O market.
- Post implementation of the change, Tata Motors Ltd (TTMT IN) is a likely inclusion to the index in December, though that depends on Dr. Reddy’s Laboratories (DRRD IN) being deleted.
SEBI Indicts, Kotak Mahindra Promotes
- SEBI, capital market regulator penalises senior executives of Kotak Mahindra Asset Management Company for serious offenses in June 2022
- The Securities Appellate Tribunal (SAT) stays the penalties but a stay is not an exoneration, final order scheduled on November 10, 2022
- Instead of disciplining senior executives, Kotak Mahindra publicly promotes concerned executives demonstrating contempt for the regulator.
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