Mumbai, Dec. 2 -- NSE Indices has rolled out a major overhaul of how some of India's most traded sectoral indices are constructed, aligning them with SEBI's enhanced risk-monitoring and eligibility norms for derivatives. The changes tighten weight caps, expand the stock universe for key benchmarks and reshape the treatment of demergers within the Nifty family.

The Nifty Bank and Nifty Financial Services indices will see revised weightage rules that sharply restrict concentration among the top three constituents. Their weights will now be capped at 19%, 14% and 10% respectively, while non-F&O stocks will face a 4.5% individual cap and a 10% cumulative ceiling. The Nifty Financial Services index will implement these changes in a single tra...