The Securities and Exchange Board of India (SEBI) has released a consultation paper under the SEBI (Index Providers) Regulations, 2024, seeking stakeholder feedback on compliance standards and governance frameworks. The move aims to enhance transparency, accountability, and reliability in the administration of financial benchmarks and indices.
The Securities and Exchange Board of India has initiated a consultation process to strengthen oversight of index providers in the securities market. The circular, issued under the SEBI (Index Providers) Regulations, 2024, outlines compliance standards aligned with international best practices, including IOSCO principles, to ensure independence and reliability of indices.
Key highlights from the announcement include
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Consultation paper seeks feedback on compliance standards for index providers.
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Focus on governance, transparency, accountability, and quality of benchmark administration.
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Framework aligns with IOSCO principles to ensure global best practices.
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Index providers must adhere to clear methodologies for selection of representative stocks.
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Objective is to safeguard investor confidence and market integrity.
The consultation paper emphasizes the importance of robust governance in index creation, particularly for broad market indices that influence investment decisions and passive fund flows. SEBI’s initiative reflects its commitment to strengthening India’s financial market infrastructure and ensuring indices remain credible and transparent.
Sources: SEBI Notification, MSCI Consultation Response, Gazette of India