SEBI Caps Bank Nifty Weights at 20% to Cut Concentration Risk
The Securities and Exchange Board of India (SEBI) has mandated significant changes to key financial indices like the Bank Nifty, aiming to actively reduce concentration risk. The new norms require a minimum of 14 stocks in the index, ensuring greater diversification. Crucially, the weight of the single largest stock is now capped at 20% (down…