SEBI Consultation Paper on ‘Significant Indices’ under SEBI (Index Providers) Regulations, 2024

The Securities and Exchange Board of India (“SEBI”) has issued a consultation paper dated January 19, 2026, enclosing a draft circular under the SEBI (Index Providers) Regulations, 2024 (“Index Providers Regulations”), proposing to operationalise the concept of significant indices by prescribing an assets under management (“AUM”)-based threshold and publishing a list of such indices for regulatory purposes.

• Applicability of the Regulations

In terms of Regulation 3(1) of the Index Providers Regulations, the regulatory framework shall apply only to index providers administering Significant Indices consisting of securities listed on a recognised stock exchange in India and used in the Indian securities market.

• Definition of “Significant Indices”

A benchmark or index (including an index of indices) based on listed securities is proposed to be classified as a “Significant Index” if it is tracked or benchmarked by domestic mutual fund schemes with cumulative AUM exceeding INR 20,000 crores. The cumulative AUM is to be computed on the basis of a six-month daily average basis ending on June 30 and December 31 of every year, with proportionate attribution where mutual fund schemes track multiple indices or, in the case of indices of indices, based on the respective weights of the underlying indices.

Where a mutual fund scheme tracks more than one index or benchmark, the cumulative AUM attributable to each such index or benchmark shall be computed by allocating the scheme’s total AUM in proportion to the extent to which the scheme tracks each respective index or benchmark. Further, in the case of an “index of indices,” the cumulative AUM for each underlying index shall include the AUM attributable thereto, calculated in proportion to its respective weight in such composite index.

• List of Significant Indices

SEBI has enclosed, as an annexure to the draft circular, a list of indices identified as Significant Indices based on cumulative mutual fund AUM for the period from January 1, 2025, to June 30, 2025. The list includes major BSE equity indices, CRISIL debt and hybrid indices, and several NSE indices such as NIFTY 50, NIFTY 100, NIFTY 500, Nifty Bank and Nifty Next 50, etc.

• Registration Requirement for Index Providers

Providers of the identified Significant Indices are required to apply for registration with SEBI as index providers in accordance with Regulation 4 of the Index Providers Regulations within six months from the date of issuance of the final circular. This requirement will not apply where all Significant Indices

administered by a provider are already regulated by the Reserve Bank of India, including the Significant Benchmarks notified under Section 45W of the Reserve Bank of India Act, 1934.

• Grievance Redressal Mechanism

The draft circular clarifies that the grievance redressal mechanism under Regulation 23 of the Index Providers Regulations shall apply only to Significant Indices provided by SEBI-registered index providers. Subscribers to such indices will accordingly have recourse to SEBI’s grievance redressal framework.

SEBI has invited public comments on the proposals in the consultation paper on or before February 10, 2026, through its online public comments’ portal or by email in case of technical issues.

The provisions of the circular will come into force with immediate effect on the date of notification.

Link for the circular here.

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