SEBI Introduces “Significant Indices” Framework under SEBI (Index Providers) Regulations, 2024

The Securities and Exchange Board of India (SEBI) has issued a Circular No. HO/47/17/12(8)2025-MRD-POD2, dated May 05, 2026, addressed to all Index Providers, Stock Exchanges, Mutual Funds, Asset Management Companies, and the Association of Mutual Funds in India, announcing the introduction of a new concept, “Significant Indices”, under the SEBI (Index Providers) Regulations, 2024, for Index Providers in the securities market. These rules have come into effect with immediate effect. This action is aimed towards improving transparency, accountability, and governance in the administration of market indices used in India’s securities market.

Regulation 3(1) of the IP Regulations reads, “These regulations shall be applicable only to Index Providers that administer Significant Indices consisting of securities listed on a recognised stock exchange in India for use in the Indian securities market,” and Regulation 2(1)(u) of the IP Regulations states the meaning of ‘Significant Indices’, reading, “Indices administered by an Index Provider, which are tracked or benchmarked by domestic mutual fund schemes with the cumulative assets under management exceeding the limits as may be specified from time to time. Explanation: The list of ‘Significant Indices’ shall be specified by the Board from time to time.”

Under this newly introduced framework, an index will be treated as a “Significant Index” if mutual fund schemes tracking or benchmarking it have an average cumulative Assets Under Management (AUM) of more than Rs 20,000 crore over the previous six months. This review will be conducted twice a year, based on data ending June 30 and December 31.

SEBI clarified that once an index is classified as significant, it will continue to remain on the list unless its tracked AUM stays below the threshold for three continuous years. Based on the AUM data from July 1, 2025, to December 31, 2025, SEBI has released the first official list of Significant Indices.

Major equity indices involving BSE Sensex, BSE 100, Nifty 50, Nifty Bank, Nifty 500, Nifty Midcap 150, and several CRISIL debt and hybrid indices are included in the list. The index providers covered include BSE Index Services Pvt. Ltd., CRISIL, and NSE Indices Limited. SEBI has directed all index providers offering these Significant Indices to apply for registration within six months from the date of the circular. However, indices already regulated by the Reserve Bank of India (RBI) as “Significant Benchmarks” or “Authorised Benchmarks” will be exempt.

The circular further reads that entities registered under SEBI that are carrying out index activities within the same organisation must create a separate legal entity for index operations within two years.

Refer to the official circular for complete information.