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SEBI announces implementation timeline for derivatives on Bankex, BankNifty, FinNiftySEBI issues new guidelines for derivatives on Bankex, FinNifty and BankNifty, aiming to boost market efficiency and sector representation.By PTI October 30, 2025, 8:25:30 PM IST (Published)2 Min ReadMarkets regulator SEBI on Thursday came out with guidelines for stock exchanges to implement eligibility criteria for derivatives on non-benchmark indices such as Bankex, FinNifty and BankNifty.

In its circular, SEBI said stock exchanges must adjust the composition and weights of existing non-benchmark indices.

For Bankex and FinNifty, the changes must be made in a single phase by December 31, 2025, while for BankNifty, adjustments will be done in four monthly phases and completed by March 31, 2026 to ensure an orderly rebalancing of index-tracking funds, it added.

The move is aimed at boosting market efficiency, enhance representation of the banking and financial sectors and give more diverse trading and investment opportunities.

According to the circular, exchanges are required to comply with the prudential norms specified in SEBI's directive.

Sebi said non-benchmark indices must follow certain rules to qualify for derivatives trading. These include having at least 14 constituent stocks, ensuring that the largest stock's weight does not exceed 20%, the combined weight of the top three stocks stays within 45%, and that the remaining stocks follow a descending weight order based on their size.

The regulator has asked stock exchanges and clearing corporations to update their systems, notify market participants in advance, and ensure compliance by the given timelines.Continue Reading(Edited by : Sheersh Kapoor)Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBank NiftyBankexSEBI