Snap has been blocked from another major index because of its lack of voting rights for shareholders.
The S&P 500 will not list the tech company, or any other with multiple share classes, following hot on the heels of the FTSE Russell making changes.
Read more: Snap shares just touched a record low
S&P Dow Jones Indices said companies with such shareholdings will not be eligible for the S&P Composite 1500 and its component indices such as the S&P 500 from today. Existing companies with multiple share classes such as Google owner Alphabet and Warren Buffett's Berkshire Hathaway will remain in the index.
"Companies with multiple share class structures tend to have corporate governance structures that treat different shareholder classes unequally with respect to voting rights and other governance issues. Therefore, S&P DJI’s US Index Committee will no longer consider these company structure types as future replacement candidates for the S&P Composite 1500 and its component indices, including the S&P 500."
FTSE Russell last week introduced changes that mean companies on its indices must offer non-restricted voting rights of at least five per cent from September. This applies to newly listed companies such as Snap, as well as existing companies which will have a "grandfathering" period of five years to make changes to comply.
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The changes come after Snap's decision to offer no voting rights to shareholders during its IPO earlier this year, causing concern among investors.
The decision means funds linked to these indices will not be forced to hold stock in companies in which they have no say.
Shares in Snap opened more than two per cent lower on the New York Stock Exchange.
