SEBI sets ₹20,000 crore mutual fund AUM rule to classify significant indices

The Securities and Exchange Board of India (SEBI) has issued a circular clarifying what qualifies as “significant indices” under its Index Providers Regulations, 2024, and outlining compliance requirements for index providers.

SEBI said the regulations apply only to index providers that administer indices made up of securities listed on recognised stock exchanges in India and used in the domestic securities market.

Threshold based on mutual fund exposure

According to the circular, an index will be classified as a “significant index” if the average daily cumulative assets under management (AUM) of mutual fund schemes tracking or benchmarking it exceed ₹20,000 crore for each of the past six months. The assessment will be carried out twice a year, ending June 30 and December 31.

SEBI stated that this threshold was finalised after considering feedback from market participants.

Retention and review criteria

Once included in the list, an index will continue to be treated as significant unless the AUM linked to it falls below the threshold for three continuous years. This translates to six consecutive half-yearly review periods.

The regulator has also published an initial list of such indices based on mutual fund AUM data for the period from July 1, 2025 to December 31, 2025.

Registration requirement for index providers

Index providers offering these significant indices must apply for registration with SEBI within six months from the date of the circular. However, the requirement will not apply to indices already recognised by the Reserve

Bank of India

(RBI) as “significant benchmarks” or “authorised benchmarks” under its existing framework.

SEBI added that existing index providers can continue their operations during this period, provided they submit their registration applications within the specified timeline.

Objective of the framework

The move is part of SEBI’s broader effort to strengthen transparency, governance, and accountability in the administration of indices that are widely tracked by investors through mutual funds.

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