FIA has submitted its response to the Securities and Exchange Board of India’s consultation on the implementation of eligibility criteria for derivatives on non-benchmark indices, which aims to prevent concentration of derivatives indices in a few stocks.
In its response, FIA expresses support for Alternative B, which allows existing indices to transition through reweighting and constituent adjustments, rather than requiring the creation of entirely new indices. This represents a balanced and pragmatic approach that ensures continuity for market participants, reduces operational disruption, and enhances investor confidence in the transition process.
FIA also endorses the specific implementation proposals from BSE and the National Stock Exchange, noting that these approaches strike the right balance between minimising operational disruption and maintaining market stability.
Read the response here.
