SEBI ₹20,000-Crore AUM Test for Significant Indices
Why in the news
SEBI floated a size test to decide which mutual fund benchmarks need tighter governance and transparency.
The proposal
- An index is significant if domestic mutual fund schemes track or benchmark it and cumulative AUM tops ₹20,000 crore.
- It then falls under enhanced oversight of the Index Providers Regulations, 2024.
About AUM
- Assets Under Management reflects scale and investor confidence and changes daily.
- Reported by mutual funds, AMCs, pension funds, hedge funds, PMS and insurers.
- Covers equity, debt (bonds, G-Secs), money market, hybrid assets and cash.
Exam angle
- Threshold: ₹20,000 crore.
- Regulations: Index Providers Regulations, 2024.