Archive · 19 Aug 2025
SEBI Index Rejig Plan: Experts Say Long Overdue
SEBI is planning to change how some stock market indexes work to make them harder to cheat.
This is because some big stocks have too much control, making it easy for traders to trick the market.
Experts think this is a good idea but should have happened earlier.
SEBI wants to spread out the stocks in the index, so no single stock can control it.
They plan to add more stocks to the Bank Nifty and limit how much each stock can affect the whole index.
SEBI proposes to restructure equity indices linked to derivatives to prevent market manipulation.
Experts say the move is positive but should have been implemented sooner.
The goal is to reduce the dominance of a few stocks within an index.
Bank Nifty, for example, has high concentration with two banks comprising over 55% of the index.
SEBI suggests increasing the number of stocks in Bank Nifty and limiting the weight of top constituents.
- Who
- The Securities and Exchange Board of India (SEBI)
- What
- SEBI proposes to restructure equity indices linked to derivatives.
- When
- The proposal was made on Monday.
- Where
- India
- Why
- To prevent market manipulation and reduce the dominance of a few stocks.
SEBI
Market Participants
Implementation Strategy
SEBI
Restructure equity indices to reduce concentration and prevent manipulation.
Market Participants
Market participants and brokers suggest restructuring existing indices.
- Regulator
- SEBI
- Index Targeted
- Nifty Bank & Bankex
- Proposed Action
- Index Restructuring
- Bank Nifty Composition
- Increase to 14+ stocks
- Top Constituent Weight Limit
- 20% maximum
- Top 3 Constituent Weight Limit
- 45% maximum
Sources
Indian regulator proposes phased restructuring of indexes with derivatives contracts
SEBI proposes to realign weights in Bank Nifty, BSE Bankex indices
SEBI plans relaxing minimum public offer size for large cos, keeps 35% retail quota intact
SEBI plans easier IPO rules for big firms, proposes lower public offer, retail quota
Sebi seeks views on restructuring sectoral indices for safer derivatives
I-T Dept Probes ‘Control’ Of Jane Street India, Summons Auditor
Sebi Eyes Tweaks To...
Sebi likely to introduce intraday limits for index options trading
SEBI weighs tighter intraday limits on index options
