SEBI vide press release dated 11.12.2020 has issued a Consultation paper on Compliance Standards for Index Providers to create a framework of standards for financial benchmarks (or indices) based on international best practices. The paper provides a suggestive framework for Index Providers in India, under three heads:
- In respect of Indices based on which any product including derivatives, Exchange Traded Funds (ETFs), Market Linked Debentures (MLDs) are available/ traded on Indian stock exchanges.
- In respect of Indices which are constructed based on data provided by Indian stock exchange(s)
- In respect of Indices provided by the index providers that are used by Mutual Funds for benchmarking of funds performances or issuance of Index Funds.
