Special adjustment in Nifty indices for HEG demerger from September 7

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HEG demerger Nifty adjustment

Highlights

A special pre-open session will be held in the capital market segment on September 7, 2026, for the demerger of the graphite business of HEG Ltd.
After the demerger, HEG Graphite Ltd. will be included in 11 major Nifty indices at zero value with the DUMMYHEG symbol, and there will be no divisor adjustment.
This adjustment will bring technical changes for tracker funds and investors' portfolios, benchmark tracking, and operational strategies of Nifty-based indices.

This article was translated from the original. Read the original version by our correspondent here.

Demergers Adjustment and Index Implementation

According to the NSE, the National Stock Exchange of India announced via circular NSE/CML/76,106 dated September 1, 2026, that a special pre-open session will be held for HEG Ltd. in the capital market segment on September 7, 2026. This step is being taken due to the transfer of the graphite business from HEG Ltd. to the newly formed company HEG Graphite Ltd.

In line with index methodology, the demerged entity HEG Graphite Ltd. will be included at zero value with the DUMMYHEG symbol, and no divisor adjustment will be made. This change is effective from September 7, 2026, and will be based on the closing price as of September 4, 2026.

This adjustment will be made in Nifty 500, Nifty Smallcap 250, Nifty MidSmallcap 400, Nifty MidSmallcap400 50:50, Nifty Smallcap 500, Nifty Total Market, Nifty500 LargeMidSmall Equal-Cap Weighted, Nifty500 Multicap 50:25:25, Nifty500 Equal Weight, Nifty500 Shariah, and Nifty500 Ahimsa.

Impact on Market Participants and Investors

This adjustment is significant for funds and investors tracking Nifty-based indices, as the demerger brings technical changes to index composition and stock representation. The purpose of the special pre-open session is to support price discovery and a smooth transition so that necessary adjustments can be completed before trading begins.

It is also important for market participants that detailed guidelines for managing corporate actions related to the demerger are available in the Nifty methodology document. This ensures clarity in passive investment products, benchmark tracking strategies, and index-related operational decisions.

Due to the demerger of India Glycols Ltd., NSE arranged a special pre-open session in the capital market segment for its shares on September 2, 2026. Our previous report stated that the resulting companies Ennature Bio Pharma Ltd. and IGL Spirits Ltd. were included in select Nifty indices at zero value and equal weight with DUMMY symbols, without divisor adjustment—so that index-tracking funds and investors could adjust their portfolios in time.

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