Sebi plans to expand non-benchmark indices like Bankex, Banknifty and Finnifty
Sebi has proposed changes to non-benchmark indices like Bankex, Banknifty, and Finnifty, expanding individual stock weights. The regulator capped the top constituent’s weight at 20% and the top three at 45%, with at least 14 constituents. These adjustments aim to enhance transparency and reduce single-stock risk in index derivatives.
Banks frontload provisions to be fit for ECL days
Banks are proactively setting aside extra funds. This is in preparation for a new expected credit loss framework starting in 2027. Some lenders are also covering anticipated stress in microfinance loans. This move aims to strengthen balance sheets ahead of regulatory changes and potential challenges. Banks are building buffers to meet future requirements.