SEBI Sets ₹20,000 Crore AUM Threshold For Significant Indices

The Securities and Exchange Board of India (SEBI) has defined “significant indices” as benchmark indices with a daily average cumulative assets under management (AUM) of more than ₹20,000 crore tracked by mutual fund schemes over the previous six months.

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The market regulator issued the clarification through a circular released on May 6, 2026. The threshold will be evaluated twice every year based on data ending June 30 and December 31.

According to the circular, indices based on listed securities, including the index of indices, will qualify as significant if the cumulative average AUM tracking them across mutual fund schemes exceeds ₹20,000 crore for each of the past six months.

Review To Happen Every Six Months

SEBI said the classification process will follow a half-yearly review mechanism. The regulator added that the framework applies to all benchmark and index providers linked to mutual fund schemes investing in listed securities.

The circular stated that the review will determine whether an index continues to remain under the significant category based on the prescribed AUM threshold.

48 Indices Included In Initial List

SEBI has identified 48 indices under the significant indices category in the first phase. These include major benchmark indices such as BSE 100, BSE 500, Nifty 50 and Nifty Bank.

The regulator said the move is aimed at strengthening oversight of benchmark administrators and index providers associated with large investor exposure through mutual funds.

Registration Requirement For Index Providers

SEBI also directed index providers that are not regulated by the Reserve Bank of India to apply for registration with the market regulator within six months from the date of the circular.

The regulator said index providers offering significant indices must comply with the applicable regulatory framework after registration.

The circular further stated that the registration requirement applies to providers of benchmarks or indices linked to listed securities that fall under the newly defined significant category.

Framework Linked To Growing Passive Investments

The latest move comes as passive investment products, including index funds and exchange-traded funds, continue to see rising inflows in India.

According to data released by the Association of Mutual Funds in India (AMFI), assets managed through passive funds have increased steadily over recent years, with benchmark-linked products accounting for a larger share of mutual fund investments.

SEBI said the new framework will help establish a structured mechanism for monitoring widely tracked indices and the entities managing them.