Explainer: Why stock exchanges have to rejig their bank indices

Sebi has instructed exchanges to rebalance non-benchmark indices by limiting exposure to individual stocks through index derivatives. The revised eligibility criteria excludes Bank Nifty, BSE Bankex, and Fin Nifty. The changes will be implemented in phases and could affect MFs, brokers, and investors. The proposal suggests a minimum of 14 constituents with the top three […]