SEBI’s Regulatory Framework for Index Providers

Recently, Securities and Exchange Board of India (SEBI) introduced the regulatory framework for index providers to enhance transparency and accountability in benchmark index administration.

More on Regulatory Framework

• Index providers offering indices for use in India are required to register with the regulator and obtain authorization for the introduction of such indices.
• An index provider must have a minimum net worth of Rs. 25 crore and must have a minimum of 5 years of experience in index administration
• An index provider must constitute an oversight committee to review the existing index design.
• The committee must also review the index methodology to ensure it ....