Sebi proposes framework to improve governance
New Delhi: Markets regulator Sebi on Monday proposed a regulatory framework for 'Significant Indices' as a part of its effort to improve the governance of Index Providers in the securities market.In its consultation paper, Sebi has defined "Significant Indices" as those administered by an Index Provider and benchmarked by domestic mutual fund schemes with a cumulative Assets Under Management (AUM) exceeding Rs 20,000 crore.
The threshold should be calculated based on the daily average AUM of domestic mutual fund schemes for each of the past six months, ending on June 30 and December 31 of each year. For calculating the AUM, if a mutual fund scheme tracks multiple indices, the AUM is split proportionally. For an "index of indices," the AUM of underlying indices is included based on their respective weights. The proposal, if implemented, aims to increase transparency and accountability in financial benchmarks.
