UPSC Prelims Practice Questions — ‘Threshold for significant index likely at ₹20,000 cr.’

Q1. As per SEBI's May 2026 circular operationalising the 'Significant Indices' framework under the SEBI (Index Providers) Regulations, 2024, how many indices were specified in the first official list of 'Significant Indices'?

• A. 32
• B. 42
• C. 48
• D. 56

Q2. With reference to the framework for 'Significant Indices' as compared to the broader SEBI (Index Providers) Regulations, 2024, consider the following statements: 1. Indices notified by the Reserve Bank of India as 'significant benchmarks' are excluded from the requirement to register under the Significant Indices framework. 2. The grievance redressal mechanism applicable to a 'Significant Index' is available not only to subscribers of the index but also to individual retail investors holding mutual fund units tracking such index. 3. The AUM-based threshold for classifying an index as 'significant' is computed on a six-month daily average basis ending 30th June and 31st December each year. Which of the statements given above is/are correct?

1. Indices notified by the Reserve Bank of India as 'significant benchmarks' are excluded from the requirement to register under the Significant Indices framework.
2. The grievance redressal mechanism applicable to a 'Significant Index' is available not only to subscribers of the index but also to individual retail investors holding mutual fund units tracking such index.
3. The AUM-based threshold for classifying an index as 'significant' is computed on a six-month daily average basis ending 30th June and 31st December each year.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q3. Under the SEBI (Index Providers) Regulations, 2024, the term 'Significant Index' is most accurately defined as:

• A. An index whose constituent securities together have a free-float market capitalisation exceeding ₹20,000 crore on the reference date.
• B. An index tracked or used as a benchmark by domestic mutual fund schemes whose six-month daily average cumulative AUM exceeds ₹20,000 crore as of 30th June or 31st December.
• C. An index used by at least twenty mutual fund schemes whose aggregate one-day AUM on 31st March exceeds ₹20,000 crore.
• D. An index of equity securities listed on a recognised stock exchange with a turnover-based weightage of at least ₹20,000 crore in the preceding financial year.

Q4. With reference to the 'Significant Indices' framework operationalised by SEBI in 2026, consider the following statements: 1. The framework excludes indices notified by the Reserve Bank of India as 'significant benchmarks' or 'authorised benchmarks'. 2. Index providers of Significant Indices are required to apply for SEBI registration within six months of the issue of the circular. 3. Grievance redressal under the Regulations is restricted to subscribers of the Significant Index and not extended to individual retail investors. 4. The cumulative AUM for the threshold test is determined on a rolling twelve-month average basis ending 31st March each year. Which of the statements given above is/are NOT correct?

1. The framework excludes indices notified by the Reserve Bank of India as 'significant benchmarks' or 'authorised benchmarks'.
2. Index providers of Significant Indices are required to apply for SEBI registration within six months of the issue of the circular.
3. Grievance redressal under the Regulations is restricted to subscribers of the Significant Index and not extended to individual retail investors.
4. The cumulative AUM for the threshold test is determined on a rolling twelve-month average basis ending 31st March each year.

• A. 1 and 3 only
• B. 2 only
• C. 4 only
• D. 3 and 4

Q5. The ₹20,000 crore AUM-linked threshold for classifying a benchmark as a 'Significant Index' has been operationalised by SEBI under which one of the following regulations?

• A. SEBI (Mutual Funds) Regulations, 1996
• B. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• C. SEBI (Index Providers) Regulations, 2024
• D. SEBI (Credit Rating Agencies) Regulations, 1999