Vedanta Is Being Excluded From MSCI’s Global Standard Indices After Its Demerger

Global index provider MSCI will remove Vedanta Ltd, the residual entity left after its demerger, from its Global Standard Indices from June 22, 2026. The move comes after the completion of one of India’s biggest corporate restructuring exercises and will lead to a notable reshuffle in the index.

In an announcement released on June 16, MSCI said the residual Vedanta would be deleted from both its Standard and Large Cap indices as a consequence of the spin-off. The index provider did not announce the addition of any replacement security alongside the removal in its latest notice.

The decision comes after the completion of Vedanta’s long-awaited demerger, under which the metals-to-energy conglomerate has been split into five separately listed companies. The restructuring was completed on June 15, when four newly carved-out businesses: Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel, made their stock market debut on the NSE and BSE after a special pre-open session.

MSCI’s latest update changes what it had said earlier on June 12. At that time, the index provider had stated that Vedanta would be removed from the Global Standard Indices from June 17, and that Vedanta Aluminium would be added to the Standard and Large Cap indices at the same time.

In its revised announcement on June 16, MSCI pushed the deletion date for Vedanta to June 22. It also did not mention any inclusion of Vedanta Aluminium in the benchmark indices.

Passive Funds Likely To Rebalance After Exclusion

Index changes like this are closely watched by investors because they often lead to buying and selling by exchange-traded funds and other passive funds that track MSCI benchmarks. Index inclusions typically trigger buying from passive funds that replicate the benchmark, while exclusions often prompt selling as portfolios are adjusted.

The move comes after Vedanta’s demerger significantly changed the size and structure of the listed company. Before the restructuring, investors held shares in a diversified conglomerate covering aluminium, oil and gas, power, ferrous materials, and other businesses. After the split, Vedanta Ltd’s asset base is mainly limited to select investments, including Hindustan Zinc, while the former group businesses now operate as separate listed entities.

Demerger Leads To Re-Rating Of Vedanta’s Individual Companies

Post-demerger price action suggested that investors were placing greater value on the individual entities than on Vedanta’s pre-split structure. Based on the listing prices of the newly carved-out entities and the current value of Vedanta Ltd, the combined worth of all five companies was higher than Vedanta’s valuation before the demerger.

Among the new listings, Vedanta Aluminium stood out as the largest and most valuable unit. It is listed at around Rs 527 per share on the BSE, giving it a market capitalisation of over Rs 2 lakh crore. This made it more valuable than the remaining Vedanta Ltd entity at the time of listing.

Under the demerger structure, shareholders received one share each of Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Iron & Steel for every Vedanta share held on the May 1 record date.