(Reuters) -India markets regulator said on Thursday indexes of banking stocks linked to derivatives contracts – NSE’s Nifty Bank, BSE’s Bankex and NSE’s Nifty Financial Services – will be restructured in a phased manner.
The SEBI circular noted the Bankex and Nifty Financial Services indexes will become more broadbased by December, and Nifty Bank by March 2026.
The Bankex and Nifty Financial Services indexes will broadbase and adjust weightage of their individual constituents stocks in one tranche, according to the SEBI circular.
The Nifty Bank index will adjust the weightage of individual stocks over four monthly tranches.
Earlier in August, SEBI had proposed a phased approach to restructuring existing equity indices that are linked to derivatives contracts to prevent market manipulation.
Analysts believe these adjustments will reduce the vulnerability of the indexes to external interference, a crucial step following regulatory action that temporarily suspended U.S.-based Jane Street over its trading practices in a major index in July.
(Reporting by Anuran Sadhu in Bengaluru; Editing by Krishna Chandra Eluri)
