SEBI Classifies "Significant Indices" Based on Rs 20,000 Crore AUM 07May2026
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SEBI has now formally identified 48 market indices — including familiar names like Nifty 50, Sensex and Bank Nifty — as 'Significant Indices' that will be subject to stricter regulatory oversight.
If you invest in mutual funds, the index your fund tracks is now under SEBI's watch. Here's what that means for you.
1. What Are Significant Indices?
India's capital market regulator, Securities and Exchange Board of India (SEBI) has introduced a formal framework to identify “Significant Indices” under its 2024 regulations.
These are market indices that are widely tracked by mutual funds and influence large volumes of investor money in India’s securities market.
SEBI’s move aims to improve transparency, accountability and governance among index providers whose benchmarks play a major role in investment decisions.
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Related blogs:
Check Update 07May2026 with charts 127 to 132: Indian Economy data bank: Additional data charts: Top 5 AMCs offering ETFs / Index funds by AUM; and ETFs tracking Nifty 50 index
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2. How Does an Index Become Significant?
According to SEBI, an index will qualify as a “Significant Index” if the average cumulative Assets Under Management (AUM) linked to it exceeds Rs 20,000 crore across mutual fund schemes for six consecutive months.
SEBI will periodically review which indices qualify as significant indices. The review will happen twice every year, based on data ending June 30th and December 31st.
To ensure stability, SEBI applies a "sticky" rule: once an index is labeled significant, it cannot leave the list unless its AUM stays below that Rs 20,000 Crore mark for three full years.
This rule prevents frequent additions and removals and ensures stability in the regulatory process.
3. Why This Matters for Investors:
Indices are not just market indicators anymore. Today, many mutual funds, exchange traded funds (ETFs) and passive investment products directly track benchmark indices such as Nifty 50, Bank Nifty or BSE Sensex, involving thousands of crores of investors' money.
SEBI’s framework seeks to ensure that these benchmarks are managed fairly, transparently and consistently.
4. Registration Requirement for Index Providers:
SEBI has directed index providers managing these “Significant Indices” to apply for registration within six months from the circular date.
Currently, index providers, NSE Indices Ltd, BSE Index Services Pvt Ltd (BSE Indices) and CRISIL are not yet registered with SEBI as index providers.
Now, they will have to register with SEBI as "market intermediaries" under the new "index providers" category.
SEBI has also said that any organisation already registered with it — such as a stock exchange — cannot continue running its index business as just one of its internal departments.
Within two years, these organizations must move their index operations into a separate company so that the management of indices remains independent and free from possible conflicts of interest.
5. Which Indices Are Included?
SEBI has published a list of 48 significant indices. These include major equity indices such as BSE Sensex, Nifty 50, Bank Nifty, Nifty 500 and Nifty Next 50.
The list also includes debt, hybrid, government securities, infrastructure, manufacturing, banking, PSU debt and sectoral indices tracked heavily by mutual funds.
Break-Up of the 48 Significant Indices:
The SEBI circular lists 48 indices across three index providers — nine from BSE Indices, eight from CRISIL and 31 from NSE Indices.
These indices are divided into four categories:
15 equity broad market indices
9 equity sector indices
18 debt indices
6 hybrid indices
Chart 1: List of Signficant Indices under Equity broad market and Equity sector category (identified for the period: Jul2025-Dec2025) >
Chart 2: List of Signficant Indices under Debt and Hybrid category (identified for the period: Jul2025-Dec2025) >
Examples showing why an index is a significant index:
1) The assets under management (AUM) of passive funds that are tracking Nifty Next 50 index as on 31Mar2026 are as follows:
ETFs: Rs 14,694 crore
Index funds: Rs 21,520 crore
Combined for passive funds: Rs 36,214 crore
As the combined AUM crosses Rs 20,000 crore threshold set up by SEBI, Nifty Next 50 index is a significant index as defined by SEBI.
It may be noted any active mutual funds benchmarking against this index would push this total even higher.
While SEBI's initial classification was based on the average AUM from the July-Dec2025 period, current data as of Mar2026 confirms that these indices continue to hold their 'Significant' status by comfortably sitting above the Rs 20,000 crore threshold.
2) The assets under management (AUM) of passive funds that are tracking Nifty CPSE index as on 31Mar2026 are as follows:
ETFs: Rs 20,592 crore
Index funds: nil
Combined for passive funds: Rs 20,592 crore
As the AUM from ETFs alone crosses the Rs 20,000 crore threshold, the Nifty CPSE index qualifies as 'Significant' regardless of the lack of Index Funds participation.
Note: While the data above focuses on passive funds like ETFs and Index Funds, any Active Mutual Funds using these as a primary benchmark also contribute to the total AUM count under SEBI rules.
Beyond regulation, the above two lists also show where Indian mutual fund investors (both households and corporates) are increasingly investing their money — from broad market indices like the Nifty 50 to sector-specific and debt benchmarks, reflecting diverse investment choices.
6. Impact on India’s Financial Markets:
The new framework reflects the growing importance of passive investing in India. As more investors put money into index funds and ETFs, benchmark governance becomes critical for market integrity.
7. Conclusion:
SEBI's identification of 48 Significant Indices marks a pivotal moment in India's investment landscape — for the first time, the benchmarks that quietly govern trillions of rupees of investor money will be formally regulated.
For mutual fund investors, this means greater confidence that the index your fund tracks is governed with transparency and accountability.
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References:
SEBI circular 05May2026 on Significant Indices
SEBI registered intermediaries - like, credit rating agencies, AIFs, brokers, DRs, FPIs, investment advisers, MFs, REITs, etc. - market infrastructure institutions -
SEBI registered intermediaries - by typing the SEBI Registration Number or actual name of a particular intermediary (like, a broker or investment adviser) in the column, you can check whether it's actually registered with SEBI
Nifty Passive Insights quartelry / monthly
Nifty Passive Insights PDF for Apr2026 (with data as of 31Mar2026) - AUM data of several Significant Indices from NSE / Nifty Indices stable can be found in the PDF
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