Reliance Industries’s growing index weight causing problems for lng term investors

Reliance Industries‘ increasing weight in the benchmark indices is causing problems for long-term institutional investors as they are facing regulatory hurdles, a report says.

According to financial services major Credit Suisse’ research report, Reliance Industries’ neutral weight, which has been rising rapidly, is causing problems for all types of ‘long-only’ institutional investors.

The report said domestic index investors are constrained by rule imposed by the regulator that they cannot own more than 10 per cent of their assets under management in a single stock.
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