Mumbai, Aug. 19 -- In a consultation paper released yesterday (August 18), the Securities and Exchange board of India (SEBI) has sought comments from the public comments on a proposal for implementing eligibility criteria for non-benchmark indices.

This is being done with the aim of preventing concentration of derivatives indices in a few stocks, the markets regulator said.

In its May circular, Sebi stipulated that non-benchmark indices eligible for derivatives must include at least 14 constituents, with a cap of 20% on the largest stock and 45% on the top three combined. Additionally, constituent weights must be arranged in descending order.

To comply with these norms, SEBI has proposed two approaches have - either launch new indices ...