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Sebi approves phased revamp of Nifty Bank index by March 2026, easing new weight rules; Bankex & FinNifty to comply by Dec 2025
Nifty Bank
The Securities and Exchange Board of India (Sebi) has approved a phased restructuring of the Nifty Bank index, allowing exchanges time until March 31, 2026, to fully align with new eligibility norms for derivatives on non-benchmark indices such as Bank Nifty, Bankex and FinNifty.
The regulator’s latest circular, issued on October 30, 2025, reiterates compliance with prudential rules announced in May, which require indices to have at least 14 constituents, cap the weight of the top constituent at 20%, and limit the combined weight of the top three constituents to 45%.
To ensure a smooth transition, Sebi has permitted phased rebalancing, with Bank Nifty undergoing a four-month adjustment period extending to March 2026. Bankex and FinNifty must meet the revised norms by December 31, 2025. Sebi cautioned that the reweighting process may affect passive funds tracking these indices as well as existing derivative positions. The roadmap follows a public consultation conducted on August 18, 2025.
Sebi has instructed stock exchanges to communicate changes in advance, update rules and systems, and ensure full compliance within the stipulated timelines. The initiative, undertaken under Sections 11(1) and 11(2)(a) of the SEBI Act, 1992, aims to strengthen market structure, investor protection and the integrity of index-based derivatives.
Separately, Sebi extended the deadline for Qualified Stock Brokers (QSBs) to implement systems for the optional T+0 settlement cycle, originally due by November 1, 2025. The regulator said the extension follows operational readiness concerns raised by brokers and aims to ensure a smooth rollout.
Further guidance on the timeline will be issued later. Sebi had earlier pushed the implementation date from May 1 to November 1, after introducing optional T+0 settlement for 25 scrips in March 2024, initially for non-custodian clients.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 31, 2025, 10:41 IST
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