Sebi Proposes Framework for 'Significant Indices'

The Securities and Exchange Board of India (Sebi) has proposed a regulatory framework aimed at enhancing the governance of 'Significant Indices.' These indices are benchmarked by mutual funds with assets over Rs 20,000 crore. Sebi aims to boost transparency and accountability through this implementation.

The Securities and Exchange Board of India (Sebi) put forward new guidelines on Monday to regulate 'Significant Indices' within the securities market. This move forms part of Sebi's ongoing efforts to reinforce the governance of Index Providers.

In its consultation paper, Sebi defines 'Significant Indices' as those with cumulative Assets Under Management (AUM) surpassing Rs 20,000 crore, administered by an Index Provider, and used as benchmarks by domestic mutual fund schemes.

Sebi's proposal outlines that providers of these indices must register as Index Providers within six months upon issuing a circular, unless all significant indices are regulated by the Reserve Bank of India. Public comments are invited till January 30.