The Securities and Exchange Board of India (SEBI) has issued a circular clarifying what qualifies as 'significant indices' under its Index Providers Regulations, 2024, and outlining compliance requirements for index providers. According to the circular, the regulations apply only to index providers that administer indices made up of securities listed on recognised stock exchanges in India and used in the domestic securities market.
An index will be classified as 'significant index' if the average daily cumulative assets under management (AUM) of mutual fund schemes tracking or benchmarking it exceed ₹20,000 crore for each of the past six months. As reported by CNBC TV18, the assessment will be carried out twice a year, ending June 30 and December 31. SEBI stated that this threshold was finalised after considering feedback from market participants.
Once included in the list, an index will continue to be treated as significant unless the AUM linked to it falls below the threshold for three continuous years, translating to six consecutive half-yearly review periods. According to the circular, SEBI has also published an initial list of such indices based on mutual fund AUM data for the period from July 1, 2025 to December 31, 2025.
Index providers offering these significant indices must apply for registration with SEBI within six months from the date of the circular. However, the requirement will not apply to indices already recognised by the Reserve Bank of India (RBI) as 'significant benchmarks' or 'authorised benchmarks' under its existing framework. As reported by CNBC TV18, existing index providers can continue their operations during this period, provided they submit their registration applications within the specified timeline.
The move is part of SEBI's broader effort to strengthen transparency, governance, and accountability in the administration of indices that are widely tracked by investors through mutual funds. According to the circular, this regulatory framework aims to enhance the oversight and governance standards for significant indices that play crucial roles in the mutual fund investment ecosystem.
