Equity Index based ETF
Regulation 62
Equity Index based ETF
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter IV · Exchange Traded Funds (ETFs)
Chapter IV · Exchange Traded Funds (ETFs)
Regulation 62 – Equity Index based ETF
High importance about 3 min
Exchange Traded Funds: Index, debt, commodity and actively-managed ETFs, and how ETF units trade and redeem.
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In plain English
An Equity Index ETF must track an index that has at least 10 stocks, with no single stock above 35% (sectoral/thematic) or 25% (other) weightage, and must replicate the index to at least 95% of total assets.
In plain English
≥10 stocks; single-stock ≤35% (sectoral) / ≤25% (other); ≥95% replication
Equity Index ETF
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The rule, in its own words
Read the exact text of Regulation 62
62. (1) A FME may launch an ETF replicating an Equity Index of IFSC or India or foreign jurisdiction.
(2) An Equity Index based ETF that seeks to replicate a particular index shall ensure that such index complies with the following norms:-
(a) The index shall have a minimum of ten (10) stocks as its constituents;
(b) For a sectoral/ thematic index, no single stock shall have more than thirty-five per cent. (35%) weightage in the index; and
(c) For other than sectoral/ thematic indices, no single stock shall have more than twenty-five per cent. (25%) weightage in the index.
(3) Equity Index based ETF shall replicate the underlying index to the extent of at least ninety-five per cent. (95%) of total assets.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
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What this means in practice
Compliance actions
- Applies to
- ETF (Equity Index)
- Frequency
- At launch and ongoing
- Evidence
- Index composition analysis; Tracking / replication reports
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The numbers that matter
| Requirement | Threshold | On crossing |
|---|---|---|
| Equity Index ETF | ≥10 stocks; single-stock ≤35% (sectoral) / ≤25% (other); ≥95% replication | Index/replication norms |
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Where it connects
Read alongside
6
Check yourself
Quiz Centre
Test yourself on Regulation 62
8 questions in the unified bank test this regulation. Each explains every option and cites the provision.
An Equity Index ETF must replicate the index to at least what proportion of total assets?
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Your notes
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