Yes Bank, Adani Enterprises, PI Industries, Jubilant FoodWorks, Hindustan Aeronautics and Gland Pharma made entry to the large-cap group of stocks, as per the classification list of large-cap, midcap, and smallcap stocks, released by the Association of Mutual Funds of India (AMFI).
On the other hand, NMDC, MRF, United Breweries, Concor, General Insurance Corporation, Bank of Baroda and Max Healthcare Institute were shifted to the mid-cap group from the large-cap group.
Laurus Labs, IndiaMART InterMESH, Dixon Technologies, Navin Fluorine, AstraZeneca Pharma, Bombay Burmah, Suven Pharma and Persistent Systems were among the stocks that moved from small-cap to mid-cap club.
On the other hand, Indiabulls Housing Finance, Kajaria Ceramics, Apollo Tyres, Cholamandalam Financial Holdings, V-Guard, PVR, Symphony and Future Retail were among the stocks that moved from mid-caps to small-caps.
This classification of stocks will be effective for the February-to-July 2021 period.
As per the SEBI circular dated October 6, 2017, mutual funds have one month to align their portfolios as per the fresh list.
The market regulator on September 11 tweaked its October 2017 circular, mandating multi-cap funds to invest at least 25 per cent each in small-caps, midcaps and large-cap stocks, leaving the remaining 25 per cent to their discretion.
These funds are now required to invest a minimum of 75 per cent of their assets in equity and equity-related instruments from 65 per cent earlier.
On September 13, the regulator issued a clarification, reemphasizing that mutual funds should be true to label and stick to appropriate benchmarking, indicating its seriousness to implement the circular strictly.
The SEBI said it was conscious of market stability and that is why it had given the industry time till January 31, 2021, to meet the new minimum limit norms pertaining to multi-cap funds.
All mutual funds are required to comply with the latest provisions by the first week of February 2021.