The Securities and Exchange Board of India (SEBI) has asked providers of ‘Significant Indices’ to register under its Index Provider Regulations within 6 months, as per news report. The direction applies to index providers whose benchmarks are linked to large mutual fund assets.
According to the regulator, current index providers can continue operations during the interim period if they file their registration applications within the specified deadline.
SEBI has identified 48 indices as ‘significant’ based on assets tracked between July and December 2025. These include equity and debt indices managed by NSE Indices, BSE Index Services, and CRISIL.
Under the regulations, an index will qualify as ‘significant’ if the daily average cumulative Assets Under Management (AUM) tracking it across mutual fund schemes remain above ₹20,000 crore during each of the previous 6 months ending June 30 and December 31.
The regulator said the review of qualifying indices will take place every 6 months based on AUM data submitted during the relevant period.
SEBI said an index will continue to remain in the ‘significant’ category unless the tracked AUM falls below the ₹20,000 crore threshold for 3 straight years or six consecutive half-yearly review periods.
The circular also clarified that benchmark providers notified by the Reserve Bank of India (RBI) as ‘significant benchmarks’ or ‘authorised benchmarks’ will not come under these regulations.
The exemption applies only to RBI-notified benchmark providers and does not extend to other index providers covered under the SEBI framework.
The regulator has also directed entities already registered with SEBI in another capacity to separate their index provider business into an independent legal entity within 2 years, if such activities are currently carried out departmentally.
SEBI further said investor grievance redressal under the regulations will be available only for registered providers offering significant indices.
This comes as index-based investing through mutual funds and exchange-traded products continues to account for a larger share of market-linked investments in India.
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Under the regulations, investor grievance redressal will be available only for registered providers offering significant indices. RBI-notified benchmark providers remain exempt from the framework.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 7, 2026, 1:03 PM IST
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