SEBI defines ‘significant indices’, seeks public feedback on new norms

SEBI defines ‘significant indices’, seeks public feedback on new norms

• SEBI proposes Rs 20,000 crore AUM threshold to define 'significant indices'
• Index providers must register with SEBI if their indices meet the new criteria
• Public comments on the draft circular invited until February 10, 2026

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Markets regulator SEBI has proposed to clearly define the thresholds to identify ‘significant indices’ in the Indian securities market, aimed at improving transparency and accountability in index administration.

According to a draft circular issued on Review of Index Provider Regulations on Monday, any index tracked or benchmarked by domestic mutual fund schemes with cumulative assets under management (AUM) of over Rs 20,000 crore will be classified as a significant index. SEBI draft circular stated, “A benchmark or index (including index of indexes) based on listed securities shall be considered as ‘Significant Indices’, if, it is tracked or benchmarked by domestic mutual funds schemes with the cumulative assets under management (AUM) exceeding Rs 20,000 crore”.

SEBI said the AUM threshold will be calculated based on the daily average of AUM of domestic mutual funds schemes for each month of the past six months ending on June 30 and December 31 of every year. Where a scheme of mutual fund tracks multiple indices or benchmarks, the computation of cumulative AUM tracking respective index or benchmark will be based including on the portion of AUM of such schemes that tracks each index or benchmark. In the case of an index of indices, the AUM of underlying indices will be counted in proportion to their respective weights. The regulator clarified that the new rules will apply only to index providers administering significant indices linked to securities listed on recognized domestic stock exchanges. SEBI said the limit for Significant Indices has been calculated based on internal deliberations and discussion with AMFI.

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Index providers whose indices qualify as significant under the proposed framework will be required to register with SEBI within six months of the circular coming into force. However, indices that are already regulated by the Reserve Bank of India, including benchmarks notified under the RBI Act, will be excluded from the purview of the SEBI regulations.

SEBI also said that its grievance redressal mechanism will be available only for significant indices offered by SEBI-registered index providers, giving subscribers a formal channel to raise complaints.

SEBI has identified 47 significant indices based on mutual fund AUM data between January 1, 2025 and June 30, 2025. These include widely tracked benchmarks such as Nifty 50, Sensex, Nifty Bank, Nifty Next 50, along with several debt, hybrid, midcap and sectoral indices administered by NSE Indices, BSE Index Services and CRISIL.

SEBI has invited public comments on the draft circular until February 10, 2026.

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