new delhi the merger of indias most valuable lender and the nations largest mortgage financier to create what could be the worlds fifthmost valuable bank is inching closer to completion with just one key step remaining that investors are watching for closely announcement of the so called record date or the cutoff day set for investors for the swapping of shares of housing development finance for hdfc bankis expected within three weeksread alsohdfc bank merged entity may see 150200 mn outflows post msci largecap index inclusionmsci is planning to add hdfc bank to the largecap segment of msci global standard indexes with an adjustment factor of 05 instead of the expected 1 leading to a potential outflow of up to 200m instead of an inflow hdfc banks addition would have resulted in an additional inflow of around 3bnthe merged entity is likely to trade under the hdfc bank ticker before july 20 bringing an end to the process that began in april 2022the merger is unprecedented in india creating a bank worth 168 billion and impacting over tens of millions of customers and shareholders across the two companies apart from group insurance and asset management businessesa central team with 3 members from each company and nearly three dozen committees worked on a business integration plan meanwhile legal approvals were sought from shareholders banking securities market and competition regulators as well as stock exchanges with the final nod granted by the company law tribunal in marchthe approvals got done in good time and the integration of technology platforms is at an advanced stage keki mistry chief executive officer of the mortgage lender told bloomberg news last week the target is for the merger to be effective early july he saidfinal steponce the merger is effective a cutoff date will be announced to determine hdfc shareholders eligible to receive hdfc bank shares hdfc shares will stop trading on that date and it would take a week or two for allocation and listing of new shares hdfc bank will allocate 42 new shares for 25 shares of hdfc the mortgage lender said it will try to time the record date to ensure no gap takes place between hdfc shares being suspended and hdfc bank shares being allocated to its over 740000 shareholdersa day before the record date will be the exdate which marks the price adjustment between the two merging companies said anil ghelani head of passive investments and products at dsp asset managers ltd on the exdate the hdfc bank share price will adjust to incorporate the value of hdfc this is important for key stock indexes that include the two companies as well as overlying index funds and etfsnifty indices new rules indicate hdfc will be excluded from any index on the exdate and the value of hdfc bank updated earlier rules excluded companies from the index at the beginning of the merger process this changed soon after the hdfc merger announcement as the two financial majors are among