SEBI's reclassification norms

Are we heading for another small cap crash as porinju is expecting

Over 300 small and midcap companies on list

But couldn’t there be schemes that were classified as Mid or small cap earlier but bought some large caps and now would need to increase allocation to small and mid caps again to retain their fund name /strategy? If so this will lend support or unlikely but possibly even push prices of smalls and mids.

For the last 2-3 years, only mid/small cap stocks rallied, hence very few small/mid cap fund’s might have bought large cap stocks. It’s only in recent times where large caps stocks started performing. From last one week or so we started seeing sensex/nity is in green and small/mid cap index in red frequently.
The only positive can be the regular SIP amounts into small/mid cap funds.

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