SEBI’s Four-Phase Plan for Bank Nifty

In October 30, 2025, SEBI announced a new rule that will affect non-benchmark indices such as Bank Nifty and Fin Nifty.

- 

The move aims to reduce the dominance of a few large stocks within these indices. Currently, the movement of just one or two major bank stocks can trigger significant swings in the entire index. This change is expected to have a wide-ranging impact on ETFs, mutual funds, and derivative traders. The main objective of this step is to make the index more balanced, restrict the heavy weightage of select stocks, and provide smaller banks with a fair opportunity. From now on, ny non-benchmark index or any index on which derivative contracts can be launched must include at least 14 stocks instead of the current 12. Additionally, the maximum weight of a single stock cannot exceed 20%, and the combined weight of the top th