Overview
- SEBI’s October 30 circular directs exchanges to implement revised eligibility for derivatives on non-benchmark indices including Bank Nifty, Bankex and FinNifty.
- Bankex and FinNifty must align in a single step by December 31, 2025, while Bank Nifty will be reweighted over four monthly stages concluding on March 31, 2026.
- The norms require at least 14 constituents, cap the largest stock at 20%, limit the top three to 45% combined, and enforce a descending order of weights.
- Exchanges and clearing corporations must amend by-laws, update systems and communicate the changes to market participants in advance.
- SEBI cautions that reweighting may impact passive funds and open derivatives, and it has separately extended the deadline for QSBs to roll out optional T+0 settlement due to readiness concerns.