Market regulator Securities and Exchange Board of India (SEBI) has issued a circular on the implementation of eligibility criteria, primarily impacting the Nifty Bank index.

According to this circular, there will be staggered deadlines for derivative eligibility rules, and also provides a relief from the May 29 directive.

The SEBI circular states that the weight of the top constituents of an index will be capped at 20% from 33% currently, while the combined weight of the top three constituents cannot exceed 45%, compared to the current 62%.

This means, that the top three constituents of the Nifty Bank, HDFC Bank, ICICI Bank and State Bank of India (SBI), will see a gradual reduction in weightage.

The norms also state that all non-benchmark indices, on which derivatives are traded, su

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