Cairn India, Punjab National Bank and Vedanta will be dropped from the National Stock Exchange's Nifty 50 index with effect from April 1.
In their place, Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors Ltd (DVR) will be included in the index.
Tata Motors shares are already part of Nifty, and inclusion of Tata Motors Ltd (DVR) in the Nifty 50 will take the number of securities in the index to 51.
However, the total number of companies will continue to be 50.
Equity shares with differential voting rights are eligible to be included in the indices as an additional security subject to the fulfillment of eligibility criteria, India Index Services and Products Ltd (IISL), a subsidiary of NSE Strategic Investment Corporation, said in a circular.
"On account of inclusion of Tata Motors Ltd (DVR), the Nifty 50 index shall have 51 securities," it added.
The changes in various indices have been announced as part of periodic review.
In addition, changes have been made in several indices including financial services, infrastructure, media, metal, Nifty 200, Nifty 500.
Besides, IISL announced new structure of Nifty broad market indices. The new structure constitutes 11 indices, of which five are new indices.
The existing index structure is enhanced to efficiently represent the large, mid and small market capitalisation segments.
The five new indices are - Nifty Midcap 150, Nifty Smallcap 250, Nifty Full Midcap 100, Nifty Smallcap 50 and Nifty Full Smallcap 100.
The existing indices are - Nifty 50, Nifty 500, Nifty 100, Nifty 200, Nifty Next 50 and Nifty Midcap 50.
The replacement of stocks in various indices, change in constituents of existing indices and publication of new indices will be effective from April 1, 2016.
To align with the global industry best practices, IISL has announced revision in stock selection criteria for various indices, methodology for calculation of total return index and operational guidelines governing index maintenance.
The equity securities with Differential Voting Rights (DVRs) would be eligible for inclusion in an index, provided that free float of DVR equity class share should be at least 10 per cent of the free-float market capitalisation of a company and 100 per cent free-float market capitalisation of the last security in respective index.
This requirement shall be applicable only to those indices that are calculated based on market capitalization methodology.
The security issued by a company should meet the liquidity criteria applicable for the respective indices.
It said that in order to become eligible for inclusion in Nifty 50 and Nifty Bank index, a stock must be available for trading in NSE's Futures & Options segment.
In view of the regulatory requirement of maintaining minimum 25 per cent public shareholding for listed companies, the criteria of minimum free-float requirement of 10 per cent will not be applicable for any index.
The selection of constituents for each of these indices will be made from the universe of companies that rank within top 800 based on average daily turnover as well as market capitalisation.
The selection of stocks for Nifty Midcap Liquid 15 index will be made from Nifty Midcap 50 index.