Regulation 19 - Quality of the Methodology - Securities and Exchange Board of India (Index Providers) Regulations, 2024

Quality of the Methodology 19. (1) The Index Provider shall document and make available in public the methodology used for Index calculation and maintenance to allow an understanding as to the manner the Index is derived and to assess its representativeness, relevance and appropriateness as a reference for financial instruments. (2) The Index Provider, in order to bring about transparency in the dissemination of information about changes in Index constituent of the Indices, shall frame guidelines in its methodology document addressing time frames for changes to Index constituents by allowing sufficient time for implementation. (3) The Index Provider shall; (a) endeavour to seek market feedback, if required, for making significant changes to the Index methodology; (b) review the methodology for an Index on a periodic basis and propose to make changes, if necessary, to adhere to its objective; (c) consult and discuss the change in methodology with stakeholders including the market participants, subscribers before implementing the change in methodology; and (d) provide advance notice of the implementation of the proposed change in the methodology.