The NCLAT has issued an interim directive to MSCI, preventing the delisting of Polycab India shares from its index. This move shields the stock from potential passive selling pressure from index-tracking funds while the ongoing insolvency appeal remains sub-judice. The directive is crucial as the MSCI review cycle was scheduled to commence on October 28, 2026, creating immediate risks for institutional holdings.
NCLAT Grants Interim Relief to Polycab India Regarding MSCI Inclusion
NCLAT has directed MSCI to withhold any delisting actions against Polycab India.
The directive remains in place until the tribunal pronounces a final order in the pending appeal.
Reader Takeaway: Interim NCLAT order prevents forced passive selling; however, long-term uncertainty persists due to the ongoing insolvency-related legal battle.
What just happened
The National Company Law Appellate Tribunal (NCLAT) issued an interim directive to MSCI on October 27, 2026, concerning Polycab India. The tribunal instructed the index provider to refrain from removing Polycab stock from the MSCI index while the company’s legal appeal (Company Appeal (AT) (Insolvency) No. 1940 of 2026) is being resolved. This decision was triggered by the appellant, Bharat Ajay Jaisinghani, noting that the MSCI review cycle was set to start on October 28, 2026.
Why this matters
Index exclusion often acts as a trigger for systematic selling by ETFs and index-tracking institutional funds, which can drive volatility in a stock's price. By securing this stay, Polycab has averted a potential liquidity event, providing a buffer for shareholders while the legal proceedings continue. The order ensures that, for the immediate term, the stock remains a part of the index, maintaining its status for institutional passive inflows.
Risks to watch
The primary risk remains the underlying legal dispute between Bharat Ajay Jaisinghani and Asier Metals Private Limited, which is linked to a Corporate Insolvency Resolution Process (CIRP). Investors should monitor NCLAT proceedings closely, as the current index protection is strictly an interim measure. Once the final order is delivered, the risk of index rebalancing or exclusion could return depending on the nature of the tribunal's decision.
What to track next
Shareholders should prioritize upcoming exchange filings for updates on the final NCLAT order. Any changes to the status of the insolvency proceedings or further regulatory communication from MSCI following the tribunal's final ruling will be the next major catalyst for the stock.