Third Schedule - Code of conduct for Index Providers - Securities and Exchange Board of India (Index Providers) Regulations, 2024

THIRD SCHEDULE SECURITIES AND EXCHANGE BOARD OF INDIA (INDEX PROVIDERS) REGULATIONS, 2024 [See Regulation 12] CODE OF CONDUCT FOR INDEX PROVIDERS 1. An Index Provider, shall observe high standards of integrity and fairness in the conduct of its business. 2. An Index Provider shall fulfil its obligations in a prompt, ethical and professional manner. 3. An Index Provider shall at all times exercise due diligence, ensure proper care and exercise independent professional judgement in order to achieve and maintain objectivity and independence in the Index or Benchmark determination process. 4. An Index Provider shall have a reasonable and adequate basis for performing Index administration, with the support of appropriate and in depth research. It shall also maintain records to support its decisions. 5. An Index Provider shall have in place an administration process consistent with international standards to International Organization of Securities Commissions Principles. 6. An Index Provider shall keep track of all important changes in the market affecting the computation of Index and shall develop efficient and responsive systems to yield timely and accurate Index values. 7. An Index Provider shall disclose its methodology to their clients, users and the t public. 8. An Index Provider shall, wherever necessary, disclose to the clients, possible sources of conflict of duties and interests, which could impair its ability to make a fair, objective and unbiased determination of Indices or Benchmarks. Further it shall ensure that no conflict of interest exists between any member of its oversight committee and that of its client. 9. An Index Provider shall not make any untrue statement, suppress any material fact or make any misrepresentation in any document, report, paper or information furnished to the Board, clients or the public at large. 10. An Index Provider shall ensure that the Board is promptly informed but no later than four working days about any action, legal proceedings etc., initiated against it for any material breach or non-compliance by it, of any law, rules, regulations and directions of the Board or of any other regulatory body or judicial authority. 11. An Index Provider shall maintain an appropriate level of knowledge and competence and abide by the provisions of the Act, regulations and circulars, which may be applicable and relevant to the activities carried on by the Index Provider. 12. An Index Provider shall ensure that there is no misuse of any privileged information including prior knowledge of Index or Benchmark administration related decisions or changes. 13. An Index Provider shall provide adequate freedom and powers to its compliance officer for the effective discharge of his duties. 14. An Index Provider shall ensure that good corporate policies and corporate governance are in place. 15. An Index Provider shall not, generally and particularly in respect of administration of Index or Benchmark, be party to or instrumental for (a) creation of a false market; (b) price rigging or manipulation; or (c) dissemination of any unpublished price sensitive information in respect of securities which are listed and proposed to be listed in any stock exchange. BABITHA RAYUDU Executive Director [ADVT.-III/4/Exty./819/2023-24]