The Association of Mutual Funds of India (AMFI) has published a market capitalization classification list to classify stocks into large cap, mid cap and small cap based on the six average market capitalization. month (from July 1, 2022 to December 30, 2022).
The classification will be the market capitalization benchmark for the first half of the current year (H1CY23). Equity-oriented plans that focus on the market capitalization classification will have to reschedule plans within the next month.
Varun Beverages, ABB India, Page Industries, Tata Elxsi, Bosch, Trent, PI Industries are among them mid-cap stocks was upgraded to a large cap stock under the AMFI classification.
Meanwhile, small cap stocks Timken India, Metro Brands, Blue Dart Express, Fine Organic Industries, UCO Bank, ZF Commercial Vehicle Control, Apollo Tires, KPIT Tech have been moved to the mid cap segment.
All new listings have debuted in the small-cap category while the spin-off entity Piramal Pharma has entered the mid-cap category.
“The market cap is cut off for Large Cap at $489 billion while the average cap was cut at $168 billion Of the total MCap, large cap stocks (Top 100) accounted for 69.4% vs. 69.2% (July Review), Mid-Cap properties (101-250) 16% vs. 16 .5% (July Review), Small Cap properties (251 and up) 14.6% vs 14.3% (July Review)”, broker Edelweiss emphasized.
According to the capital markets regulator Securities and Exchange Commission of India (SEBI), listed stocks must be strictly classified into baskets with clear classification of large-cap, capital-capital stocks. mid-cap and small-cap. This is to ensure consistency to the investment universe for equity mutual fund programs.
Furthermore, SEBI has also stipulated that the Association of Mutual Funds of India (AMFI) will prepare a list of stocks in this regard. Accordingly, AMFI, in consultation with SEBI and stock exchanges, prepares a list of stocks classified based on market capitalization provided by BSE, NSE and MSEI.
The SEBI Circular on Classification and Rationalization of Mutual Fund Plans identifies large, mid-cap, and small-cap stocks based on their 6-month average market capitalization. The stock classification is as follows: Large Cap: 100th company in terms of full market capitalization; Midcap: 101-250th company in terms of full market capitalization; smallcap: 251st company onwards.
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