New Delhi, Dec. 3 -- Yes Bank and Union Bank of India are set to enter NSE's Nifty Bank as a part of the changes required by the capital markets regulator to its composition methodology. With their inclusion, the banking index will expand from 12 to 14 stocks, effective from December 31.

These additions are part of the Sebi's directive that non-benchmark indices-such as BSE's Bankex and NSE's Bank Nifty and Finnifty-must contain at least 14 stocks to remain eligible for derivatives trading.

SEBI has also proposed capping individual stock weights and limiting the combined weight of the top three components to prevent any single stock or group of stocks from exerting excessive influence on the index.

Two new stocks are expected to collec...