SEBI has issued this circular to specify the criteria and initial list of ‘Significant Indices’ under Regulation 2(1)(u) of the SEBI (Index Providers) Regulations, 2024 (IP Regulations). A benchmark or index qualifies as ‘Significant’ if the daily average cumulative AUM tracking it across mutual fund schemes exceeds ₹20,000 Crore for each of the past six months, assessed at half-yearly intervals (June 30 and December 31). Index providers administering such indices must apply for SEBI registration within six months of this circular.

Key Points

• An index is classified as ‘Significant’ if daily average cumulative AUM tracked across mutual fund schemes exceeds ₹20,000 Crore for each of the past six months ending June 30 or December 31
• The threshold is reviewed on a half-yearly basis; an index remains ‘Significant’ unless it fails the threshold for six consecutive half-yearly reviews (three continuous years)
• The initial list of Significant Indices (Annexure-A) is based on AUM data from July 1, 2025 to December 31, 2025
• Index providers must submit a registration application to SEBI within six months from May 05, 2026
• Entities registered with SEBI in another capacity that also provide Significant Indices must spin off a separate legal entity for index provider activities within two years
• Exemptions apply for indices notified by RBI as ‘Significant Benchmarks’ or classified as ‘Authorized Benchmarks’ under RBI Act Section 45W
• Grievance redressal mechanism under Regulation 23 of IP Regulations applies

Regulatory Changes

• First-ever specification of the ‘Significant Indices’ list under IP Regulations 2024, operationalizing Regulation 2(1)(u)
• Quantitative threshold set at ₹20,000 Crore cumulative AUM (daily average) for each of six consecutive months
• Retention rule: an index once designated ‘Significant’ stays on the list unless it fails the threshold for three continuous years (six half-yearly reviews)
• Entities providing Significant Indices departmentally within a SEBI-registered entity must form a separate legal entity

Compliance Requirements

• Index Providers: Must apply for registration under Regulation 4 of IP Regulations within six months (by November 05, 2026) if administering any index listed in Annexure-A
• Departmental Index Providers: Entities conducting index provider activities within an existing SEBI-registered entity must incorporate a separate legal entity within two years (by May 05, 2028)
• Mutual Funds / AMCs: Must ensure indices used as benchmarks or tracked by their schemes are compliant with the new framework; grievance redressal obligations under Regulation 23 apply
• Stock Exchanges: Informed for awareness and coordination
• AMFI: Informed for coordination with member AMCs
• Providers of indices already exempted (RBI Significant Benchmarks or Authorized Benchmarks) are not required to register under IP Regulations

Important Dates

• May 05, 2026: Date of circular issuance; compliance timeline begins
• November 05, 2026: Deadline for index providers to submit SEBI registration application (six months from circular date)
• May 05, 2028: Deadline for SEBI-registered entities providing Significant Indices departmentally to form a separate legal entity (two years from circular date)
• Half-yearly review dates: June 30 and December 31 each year for AUM threshold assessment
• Reference period for initial list: July 01, 2025 to December 31, 2025

Impact Assessment

This circular has high regulatory impact across India’s asset management and index ecosystem. Major index providers such as NSE Indices (Nifty family), BSE (Sensex family), and global providers (MSCI, FTSE, S&P) whose indices are tracked by large Indian mutual fund AUM will be required to register with SEBI and comply with governance, transparency, and accountability norms under IP Regulations. Mutual funds and AMCs must verify that their benchmark indices meet compliance requirements. The ₹20,000 Crore AUM threshold is sufficiently high to focus regulation on systemically important indices while excluding niche or smaller benchmarks. The two-year window for corporate restructuring of departmental index units provides reasonable transition time, but the six-month registration deadline is tight and requires immediate action from qualifying providers.