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SEBI Sets Diversification Rules for BankNifty, FinNifty, Bankex

1 November 20251 min read
BANKING & FINANCESEBI SetsDiversification Rulesfor BankNifty,FinNifty, Bankex1 November 2025safalsetu.com

Why in the news

SEBI aims to curb concentration and manipulation risk, citing worries from the Jane Street case.

Key facts

  • Nifty and Sensex are exempt; future non-benchmark indices are covered.
  • BankNifty gets a longer glide path to rebalance tracking AUM in tranches.

Norms

RuleLimit
Minimum stocks14
Largest weight20%
Top three45%
IndexDeadline
Bankex (BSE)December 31, 2025
FinNifty (NSE)December 31, 2025
BankNifty (NSE)March 31, 2026

Exam angle

  • Numbers: 14, 20%, 45%.
  • Context: Jane Street case.

Test yourself

1. What is the minimum number of constituents SEBI requires in a non-benchmark index with derivatives?

SEBI requires at least 14 stocks in such an index.

2. What is the maximum weight allowed for the single largest constituent of a non-benchmark index under SEBI's norms?

The largest stock can have no more than 20% weight; the top three combined up to 45%.

3. Which index received a glide path up to March 31, 2026 under SEBI's new norms?

BankNifty got the extended glide path; Bankex and FinNifty must comply by December 31, 2025.

This topic is part of Daily Current Affairs 31 October 2025 (15 topics).

All topics of the dayDay quizOctober 2025

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