CIRCULAR

CIRCULAR NO. SEBI/HO/IMD/DF3/CIR/P/2019/147, dt. 29-11-2019

Norms for Debt Exchange Traded Funds (ETFS)/Index Fund

1. The following norms are prescribed for Debt ETFs/Index Funds to be adopted by all AMCs :--

(a) The constituents of the index shall be aggregated at issuer level.

(b) The index shall have a minimum of 8 issuers.

(c) No single issuer shall have more than 15% weight in the index.

(d) The rating of the constituents of the index shall be investment grade.

(e) The constituents of the index shall have a defined credit rating and defined maturity as specified in the index methodology.

2. Replication of the Index by Debt ETFs/Index Funds shall be as follows :--

(a) Debt ETFs/Index Funds shall replicate the index completely.