Regulation 17 - Control framework - Securities and Exchange Board of India (Index Providers) Regulations, 2024

Control framework 17. (1) An Index Provider shall put in place a control framework for calculating, maintaining and disseminating the Index which shall be documented and upon request, be made available to the Board. (2) The control framework shall have an effective whistle-blowing mechanism in place in order to facilitate early awareness of potential misconduct which shall be made available to all employees including the employees of the entities which have co-developed the index or benchmark or of third parties involved with benchmark determining process and the objective of the policy shall be to encourage and support the making of disclosures by such employees who observe any unethical practice or grave misconduct and shall also include the following components: (a) Policies and procedures as specified under Conflict of Interest ; (b) Robust processes and a methodology document for calculating and maintaining the Index and the methodology document which shall include a scenario where discretionary judgement could be exercised in connection with rebalance decisions or the revision of constituents or both within Indices; (c) Robust mechanism to ensure clear accountability and effective complaint management; (d) Sound framework for documenting, maintaining and testing business continuity and recovery procedures; (e) Training to all employees including the employees of the entities which have co-developed the Index or Benchmark or of third parties involved with benchmark determining process on ethics and conflicts of interest on a periodic basis; (f) A framework addressing the protection of sensitive information and trading restrictions mentioned under Conflict of Interest .