

India's stock exchanges, NSE and BSE, are redesigning their non-benchmark indices to meet SEBI's new prudential standards, rather than creating new ones. SEBI's guidelines require indices to have at least 14 constituents and limit the weight of any single stock. BSE plans to adjust its Bankex index, while NSE aims to modify its popular Nifty Bank and Fin Nifty indices. This adjustment will help maintain market stability, avoid liquidity fragmentation, and safeguard investors from confusion. SEBI is seeking feedback on these proposed changes until September 8, 2025.