SEBI proposals on implementation of eligibility criteria for derivatives on Non Benchmark Indices

SEBI has issued a Consultation Paper on implementation of eligibility criteria for derivatives on Non Benchmark Indices based on SEBI circular dated May 29, 2025. SEBI vide circular dated May 29, 2025 has stipulated following prudential
norms pertaining to Non Benchmark Indices under section ‘Eligibility criteria for Derivatives on Non Benchmark indices:

1. Minimum of 14 constituents.
2. Top constituent’s weight≤20%
3. Combined weight of the top three constituents ≤ 45%
4. All other constituents’ individual weights must be lower than those of the higher weighted constituents (i.e. a descending weight structure)

This consultation paper examines approaches evaluated by Stock Exchanges with regard to operationalization of the aforesaid stipulation in case of existing Non-Benchmark Indices already having derivatives contracts on them. Stakeholders can sent mail comment(s) to harshadp@sebi.gov.in and darshilb@sebi.gov.in.