Nifty Bank index: SEBI eases realignment norms after concentration worry

20 August 20251 min read

Why in the news

Nifty Bank leans on HDFC Bank and ICICI Bank, so SEBI suggested softer realignment rules to avoid sudden disruption.

Rule	Limit
Single stock, non-benchmark index	20%
Top three together	45%
Minimum stocks	14

Tracks liquid, large-cap public and private banks, weighted by free-float market capitalisation.
Examples: SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank.

1. Under SEBI's May 2025 norms, what is the cap on any single stock in a non-benchmark index?

One stock is capped at 20%; the top three at 45%.

2. How many constituents does the Nifty Bank index currently have?

It has 12 banks, below the 14-stock minimum in the new norms.

3. Nifty Bank was introduced by which exchange, and in which year?

The notes say NSE introduced it in 2003.

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