Proposal to remove non-F&O stock from Nifty Next 50 index put on hold

The proposal to remove non-derivative stocks from the Nifty Next 50 index has been put on hold by the index providing arm of the National Stock Exchange (NSE).

At present, there are 11 companies that are not part of the futures and options (F&O) segment that are part of the Nifty Next 50 index.

On May 29, NSE Indices had floated a discussion paper proposing to tweak the methodology for inclusion of stocks in the Next 50 index. It was proposed that stocks part of the Nifty 100 Index, which have F&O contracts, but are not in Nifty 50, will form the Nifty Next 50 Index. If the number of index constituents is less than 50, stocks from the Nifty MidCap 50 Index will be considered.

“As the approach earlier proposed…requires further deliberation with market participants, a decision on revision in stock election methodology of the Nifty Next 50 has been kept on hold until further communication,” said NSE Indices in a circular.

Some non-F&O stocks that are part of the Next 50 index are Avenue Supermarts (Dmart), Varun Beverages, Bajaj Holdings and Investment, Adani Green Energy and Zomato. ETFs and index funds with assets under management (AUM) of around $1.5 billion are benchmarked to the Next 50 index.

Regulator raps Edelweiss Broking

The Securities and Exchange Board of India (Sebi) on Tuesday issued a warning to Edelweiss Broking (now Nuvama Wealth and Investment) and directed it to be more diligent in conducting its business and reporting suspicious transactions.

The markets regulator noted that the company had failed to report suspicious transactions by a certain client even when his trading turnover was disproportionate with the declared annual income.