Announcement for July 28, 2025 at 08:51 PM GMT

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

On July 3, 2025, MSCI launched a client consultation to gather feedback on proposed changes to the treatment of capital gains tax on Indian stock dividends. The objective was to ensure consistent treatment across the MSCI Price, Gross, and Net Dividend Total Return (DTR) Indexes.

Based on the feedback of the consultation received, the majority of the market participants expressed support for aligning the treatment of Indian stock dividends by excluding capital gains tax from the calculation of MSCI Indexes across MSCI Price, Gross, and Net Daily Total Return (DTR).

Consequently, in line with the Primary Proposal:
- Application of Price Adjustment Factor (PAF): MSCI will continue applying a PAF to the market price of the security on the ex-date of the event and will increase the number of shares as of the close on the ex-date (effective the next business day).
- MSCI Net Daily Total Return (DTR) Indexes: MSCI will no longer reinvest a negative dividend corresponding to capital gains tax in the MSCI Net DTR Indexes.
- MSCI Price and Gross Indexes: These indexes will continue with the current methodology of not reinvesting any negative amount related to capital gains tax.

MSCI notes that some market participants  preferred that capital gains tax continue to be reflected in MSCI Indexes, either through the existing approach or alternative treatments. In response, MSCI may offer custom index solutions upon request that incorporate capital gains tax into the index calculation methodology.

Implementation Timeline
MSCI will implement the new capital gain tax treatment for all Indian stock dividends effective on or after August 27, 2025, coinciding with August 2025 Index Review.

Please note that MSCI will continue to apply the current methodology for all relevant stock dividends which have the ex-date prior to August 27, 2025, regardless of whether the ex-date is known at the time of this announcement.

Treatment for HDFC Bank Stock Dividend
In line with market feedback and the consultation document, MSCI will treat the HDFC BANK stock dividend as per the current methodology and apply a 20% capital gains tax. As a result, MSCI will reinvest a negative amount on the ex-date of the HDFC BANK stock dividend corresponding to the capital gains tax in the MSCI Net Daily Total Return (DTR) Indexes only.

MSCI appreciates the valuable feedback and engagement of its clients throughout the consultation process.

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

                                     End of announcement.
                                     Further announcements may occur as needed.