SEBI trims Bank Nifty heavyweights
The Securities and Exchange Board of India has increased the minimum number of stocks in non-benchmark indices, such as NSE’s Bank Nifty, from 12 to 14. It also lowered the maximum weight allowed for the top stock to 20 percent from 33 percent and capped the combined weight of the top three stocks at 45 percent, down from 62 percent. These changes aim to cut concentration risk and improve market balance.
SEBI will apply similar adjustments to BSE’s Bankex and NSE’s FinNifty. In the Bank Nifty, the weights of HDFC Bank, ICICI Bank, and State Bank of India will be reduced in four steps, starting from December 2025 and ending on March 31, 2026. For Bankex and FinNifty, compliance may happen in one step through stock or weight changes. The new rules for derivatives on these indices take effect on December 31, 2025. After each adjustment, SEBI will check if the top three stocks exceed limits and spread any needed cuts evenly over the remaining steps.
