Implementation of eligibility criteria for derivatives on existing Non-Benchmark Indices

Eligibility criteria for derivatives on non-benchmark indices require exchanges to adjust constituents and weights with revised deadlines.

Implementation of eligibility criteria for derivatives on Non-Benchmark Indices requires stock exchanges to achieve compliance through constituent and weight adjustments in existing indices, with single-tranche adjustments permitted for BANKEX and FINNIFTY and a phased four-tranche rebalancing mandated for BANKNIFTY. The phased approach mandates iterative recalculation and proportional reduction of excess weights among top constituents, redistribution of excess to other constituents subject to prudential norms, and implementation of exchange systems, market notifications and rule amendments to meet revised timelines.