The Securities and Trade Board of India (SEBI) has issued a regulatory framework for index suppliers to strengthen transparency and accountability on administration benchmark indices.
Beneath the brand new framework, index suppliers providing indices to be used in India should be registered with Sebi and take authorization for introduction of such indices. Nonetheless, directors offering benchmarks notified by the Reserve Bank of India can be excluded from this necessary requirement. Secondly, index supplier should have a minimal internet value of Rs 25 crore and should have minimal 5 years of expertise in index administration.
An index supplier should represent an oversight committee for reviewing the prevailing index design. The committee should additionally evaluate the index methodology to make sure it displays the nomenclature and outline of the index.
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