SEBI on Monday proposed a clear quantitative threshold to identify “significant indices” that will fall under its recently-notified Index Providers Regulations, 2024.
Under the proposal, any index that is tracked or benchmarked by domestic mutual fund schemes with a cumulative assets under management (AUM) of more than ₹20,000 crore will be classified as a “significant index”. Index providers administering such benchmarks will be required to seek registration with SEBI and comply with governance, transparency and accountability norms laid down under the regulations.
The regulator has proposed that the cumulative AUM be calculated using the daily average AUM of mutual fund schemes for each month over the past six months, ending June 30 and December 31 every year. Where a mutual fund scheme tracks multiple indices, the AUM will be apportioned to each index based on the portion of assets linked to it. In the case of “index of indices”, AUM will be computed in proportion to the weights of the underlying indices.
SEBI said the proposal follows internal deliberations and discussions with the Association of Mutual Funds in India (AMFI), and is aimed at bringing regulatory clarity on which benchmarks are systemically important enough to warrant direct oversight.
Significant indices
Along with the draft circular, SEBI has published an indicative list of significant indices based on mutual fund AUM data between January and June 2025. These include widely-tracked equity benchmarks such as the Nifty 50, Sensex, Nifty Bank, Nifty 500 and BSE 500, as well as several debt and hybrid indices administered by NSE Indices and CRISIL.
Index providers of identified significant indices will have six months from the issuance of the final circular to apply for registration. However, indices already regulated by the Reserve Bank of India (RBI), including those notified as significant benchmarks under the RBI Act, will be excluded from SEBI’s purview.
Public comments on the proposal have been invited until February 10, 2026.