New Delhi, Oct. 30 -- The Securities and Exchange Board of India (Sebi) on Thursday announced new, staggered deadlines for derivative eligibility rules, giving market participants an extended transition period. The move provides relief from a 29 May directive that brought in stricter rules to de-risk these indices by capping the influence of their top stocks.
In a circular, Sebi gave a phased approach for the BankNifty and FinNifty on the National Stock Exchange (NSE) and BSE's Bankex indices.
The regulations mandate that any index with a derivatives contract must have at least 14 stocks. Furthermore, no single stock can have a weight of over 20%, and the top three constituents combined cannot exceed 45%.
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