Norms for Debt Exchange Traded Funds (ETFs)/Index Funds

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....) Sir / Madam, Subject: Norms for Debt Exchange Traded Funds (ETFs)/Index Funds 1. The following norms are prescribed for Debt ETFs/Index Funds to be adopted by all AMCs: (a) The constituents of the index shall be aggregated at issuer level. (b) The index shall have a minimum of 8 issuers. (c) No single issuer shall have more than 15% weight in the index. ....

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....el, the duration of Debt ETF/Index Fund shall not deviate +/- 5% from the duration of the index. (c) In the event, if the conditions laid down in para 2(a) and para 2(b) above are not feasible, the Debt ETFs/Index Funds shall be allowed to invest in issuances of other issuer(s) within the index having duration, yield and credit rating in line with that of the non-available issuances of th....

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....an issuance falls below the investment grade or rating mandated in the index methodology, rebalancing by Debt ETFs/Index Funds shall be done within a period of 5 working days. 4. Accordingly, any Debt ETF/Index Fund that seeks to replicate a particular Index shall ensure that such index complies with the aforesaid norms. 5. Compliance Procedure: a) The aforesaid norms shall be appli....

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....ons on the Scheme Information Document, but have not yet been launched: The issuers shall submit the compliance status vis-à-vis these norms to SEBI before launching such Debt ETFs/Index Funds. c) The above norms shall not be applicable to Debt ETFs/Index Funds tracking debt indices having constituents as Government Securities (GSecs), Treasury Bills and Tri-party Repo (TREPS) only....