The Association of Mutual Funds in India (AMFI)'s small-cap stock classification formula is likely to face challenges in the upcoming semi-annual reclassification, especially given the significant uptick in stock prices and the listing of new companies.
The market capitalisation of stocks in the small-cap category, as per the existing formula, surpasses $3 billion (₹25,000 crore), deviating from the global average range of $300 million to $2 billion, said a report by ICICI Securities.
