SEBI Circular - 30th October 2025

Implementation of eligibility criteria for derivatives on existing Non-Benchmark Indices

SEBI vide its circular dated October 30, 2025, provides guidelines for implementing eligibility criteria for derivatives on existing non-benchmark indices (NBIs) such as BANKNIFTY, BANKEX, and FINNIFTY. It mandates prudential norms like having a minimum of 14 constituents, limits on top constituent weights (≤20%) and combined top three weights (≤45%), with a descending weight structure. To comply, BANKEX and FINNIFTY must complete adjustments in one tranche by December 31, 2025, while BANKNIFTY will rebalance gradually over four monthly tranches by March 31, 2026 to ensure orderly transition and minimal market disruption.

Link: View Circular