SEBI GREENLIGHTS REGULATORY FRAMEWORK FOR INDEX PROVIDERS

The board also uiewores flexibility i inthe framework for social stock exchange

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The board of the Securities and Exchange Board of India (SEBI) has given its approval for a regulatory framework aimed at enhancing transparency and accountability in the governance and administration of financial benchmarks within the securities market. In a statement released on Saturday, SEBI announced that the regulations would establish a structure for the registration of Index Providers who license 'Significant Indices,' with SEBI determining these indices based on objective criteria.

The regulatory framework, aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks, will exclusively apply to 'Significant Indices,' according to SEBI. These decisions were part of the outcomes of the 203rd meeting of the SEBI board.

Additionally, the board granted flexibility in the framework for social stock exchanges, reducing the minimum issue size of zero coupon zero principal instruments by non-profit organizations from Rs 1 crore to Rs 50 lakh. Delisting norms were also a topic of discussion during the meeting.