Sebi plans to expand non-benchmark indices like Bankex, Banknifty and Finnifty

Mumbai: The Securities and Exchange Board of India (Sebi) has proposed changes to non-benchmark indices, the Bankex, Banknifty and Finnifty, by expanding the weights of individual stocks within these indices.

The regulator has decided to expand both the Bankex and Finnifty indices by adjusting the weights of individual stocks within these indices.

It has capped the maximum weight of the top constituent at 20% and the combined weight of the top three at 45%. It said these indices will carry at least 14 constituents.


Brokers said these measures will enhance transparency and risk control on non-benchmark indices.

"Rebalancing in weight will reduce the single stock risk on indices, so broadly constituent weight distribution on non-benchmark indices would help more fair and balanced index derivatives and reduce the risk associated with high concentration in a few stocks," said Rajesh Palviya, head - technical & derivatives, Axis Securities.

The regulator said stock exchanges must complete adjustments for Banknifty by March 31, 2026 and for Bankex and Finnifty by December 31, 2025.