New Market Cap Classification
In the revised circular (October 2017), SEBI prescribed that for mutual funds, the market capitalization for the previous six months would be considered.
Market capitalization is the basis for fund classification. As per the circular issued by SEBI, schemes were to follow the rules below:-
- Large-cap oriented schemes should invest at least 80% of their assets in large cap stocks
- Large-cap and mid-cap schemes shall have minimum allocation of 35% in each
- Similarly, mid-cap schemes and small-cap schemes shall invest at least 65% in mid-cap and small-cap stocks respectively
And here’s how the market capitalization categories were defined:-
- Large cap stocks are defined as the top 100 companies in terms of market capitalization.
- Mid cap stocks are companies having rank between 101-250 in terms of market capitalization.
- Small cap stocks are companies are from 251st onwards on full market capitalization basis.
Here is the list of Large Cap & Mid Cap Companies in India as per 30th June 2018 data. Rest all the companies fall under Small Cap space.