SEBI Defines ‘Significant Indices’ Under 2024 Regulations

Circular No. HO/47/17/12(8)2025-MRD-POD2, Dated 05.05.2026

The Securities and Exchange Board of India (SEBI) has issued a circular laying down the framework for identification of ‘Significant Indices’ under the SEBI (Index Providers) Regulations, 2024.

1. Criteria for Significant Indices

An index shall qualify as a ‘Significant Index’ where:

• The average cumulative mutual fund AUM linked to the index
• Exceeds ₹20,000 crore
• During the preceding six months

2. Registration Requirement for Index Providers

• The circular also prescribes registration requirements applicable to index providers associated with such indices

This aims to ensure:

• Proper regulatory oversight
• Enhanced transparency and governance

3. Initial List of Significant Indices

The initial list notified by SEBI includes:

• Sensex-based indices
• Nifty-based indices
• Other eligible indices meeting the prescribed threshold

4. Objective of the Framework

The framework seeks to:

• Identify indices with significant investor exposure and market impact
• Strengthen accountability and standardisation among index providers
• Enhance market integrity and investor confidence

5. Regulatory Impact

The framework will:

• Bring key index providers under a structured regulatory regime
• Improve transparency in index construction and administration
• Align Indian practices with evolving global regulatory standards

6. Conclusion

SEBI’s framework for Significant Indices marks an important step towards formal regulation of index providers, recognising the growing importance of benchmark indices in investment products and capital markets.

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