Nifty criteria may be tweaked before RIL's financial services arm demerger

Current rule could lead to firm's exclusion from index

Ahead of the proposed demerger of Reliance Industries’ (RIL’s) financial services arm, the National Stock Exchange (NSE) might tweak the framework on addition and removal of stocks in the benchmark Nifty50 index.

Under the present rule, which requires a Nifty constituent to be excluded in the event of its demerger, index heavyweight RIL would have to be removed. That might lead to selling to the tune of Rs 20,000 crore by passive funds, which track the widely popular Nifty50 index.

With a market cap of Rs 15.9 trillion, RIL has the highest weighting of 9.9 per cent in the 50-share