SEBI Defines Significant Indices, Sets ₹20,000 Crore AUM Threshold

The Securities and Exchange Board of India issued a circular on 5 May, requiring index providers of significant indices to register with the regulator within six months, as it operationalised its framework under the Index Provider Regulations.

An index qualifies as ‘significant’ if the daily average cumulative assets under management tracking it across mutual fund schemes exceeds ₹20,000 crore for each of the previous six months, assessed at 30 June and 31 December each year.

Based on assets under management data for July to December 2025, SEBI has identified 48 such indices across equity and debt segments from providers including NSE Indices, BSE Index Services and CRISIL.

Key Requirements At A Glance

• Registration deadline: Within six months.

• Assets under management threshold: ₹20,000 crore daily average for six consecutive months.

• Assessment dates: 30 June and 31 December each year.

• Indices identified so far: 48, based on July to December 2025 data.

• Providers covered: NSE Indices, BSE Index Services, CRISIL and others.

An index does not lose its significant status easily once it gets classified under the category. SEBI has kept strict conditions for removal. Tracked assets under management must fall below the threshold for three consecutive years or six consecutive half-yearly reviews before an index exits the significant category.

Existing Providers Can Keep Operating

Current index providers are not required to halt operations while the registration process is underway. They can continue running their indices provided they submit registration applications within the six-month window.

Grievance redressal under the regulations, however, will only be available for providers that have completed registration and are offering significant indices through that registered status.

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Separate Entity Requirement

Any entity already registered with the Securities and Exchange Board of India in another capacity but running index provider activities as an internal department must spin that function off into a separate legal entity. The regulator has given two years from the date of the circular to complete that separation.

The framework follows the notification of the Securities and Exchange Board of India's Index Provider Regulations in 2024 and brings formal oversight to benchmarks that underpin a large portion of India's passive investment market, including index funds and Exchange Traded Funds tracked by millions of retail investors.

Sources:

Moneycontrol

The Economic Times

Business Standard