After the market close on Friday, S&P Dow Jones Indices announced its latest quarterly rebalance of the S&P/ASX Indices.

This latest update reveals that there will be no less than seven shares kicked out of the benchmark ASX 200 index later this month.

Let's now take a look at which shares are being removed and then what will be replacing them.

Saying goodbye to the ASX 200

There are seven ASX 200 shares that will be leaving the benchmark index when it rebalances on 24 March.

The first one is Audinate Group Ltd (ASX: AD8). Tough trading conditions have weighed heavily on this audio technology company's performance over the past 12 months. This has led to a 67% share price decline, cutting its market capitalisation to $625 million.

KFC restaurant operator Collins Foods Ltd (ASX: CKF) is another ASX 200 share getting the boot. Its shares are down 17% since this time last year, reducing its market capitalisation to $1 billion.

Charter Hall Social Infrastructure REIT (ASX: CQE) isn't trading too far away from a 52-week high. However, the social infrastructure focused property company's market capitalisation of just over $1 billion isn't enough to keep it in the benchmark index.

Coal miner Coronado Global Resources Inc (ASX: CRN) has sunk 60% over the past 12 months, pulling its market capitalisation down to $855 million.

Also being ejected from the ASX 200 are the shares of Johns Lyng Group Limited (ASX: JLG). This insurance building and restoration services company was sold off last month after disappointing with its half year results. Its shares are down 57% over the past 12 months, reducing its market capitalisation to $790 million.

Finally, travel and transport company Kelsian Group Ltd (ASX: KLS) and embattled casino operator Star Entertainment Group Ltd (ASX: SGR) complete the list after sinking approximately 47% and 80%, respectively, since this time last year.

The bad news for these ASX 200 shares is that selling pressure could now increase. That's because index funds that track the index will be forced to sell their shares. In addition, fund managers that have strict investment mandates may have to sell if they aren't permitted to invest outside the benchmark index.

Shares saying hello to the ASX shares

Replacing them in the ASX 200 are copper miner Capstone Copper Corp (ASX: CSC), data centre companies Digico Infrastructure REIT (ASX: DGT) and Macquarie Technology Group Ltd (ASX: MAQ), mining technology company Imdex Ltd (ASX: IMD), investigative analytics and intelligence software provider Nuix Ltd (ASX: NXL), gold miner Spartan Resources Ltd (ASX: SPR), and online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

These companies could now experience an increase in demand for their shares as index funds buy in and they become available to fund managers with the aforementioned investment mandates.