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SEBI new rules for Nifty Bank: Something happened in the Indian stock market today which surprised the investors. A new circular from SEBI (Securities and Exchange Board of India) has created a stir within the banking sector. The Nifty Bank Index, which till now was under the control of a few big banks, is going to be completely rebalanced in the coming months. The question arises, will this change give rise to new winners in the banking sector or loosen the grip of the old giants?

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New rule and big shock

SEBI has taken strict action in its new rules regarding the weighting of the shares included in the index. Now the maximum weightage of any stock has been reduced from 33% to 20%. At the same time, the total weightage of the top three stocks included in the index has been reduced from 62% to 45%.

This simply means that the dominance of giants like HDFC Bank, ICICI Bank and State Bank of India will gradually reduce. In their place, small and government banks can strengthen their hold in the index.

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Impact on Nifty Bank (SEBI new rules for Nifty Bank)

As of September 30, the weightage of HDFC Bank was 28.49%, ICICI Bank was 24.38% and SBI was 9.17%. Now after the new rule, their weightage will be reduced gradually. SEBI has clarified that these adjustments will be completed in four phases by March 31, 2026, of which the first phase will be implemented by December 2025.

Meanwhile, the number of currently 12 banks in the index will have to be increased to at least 14. That means now stocks like Yes Bank, Indian Bank, Union Bank of India and Bank of India can also be included.

Who is the probable winner?

According to the estimates of domestic brokerage firm Nuvama Alternative & Quantitative Research, if these four banks join Nifty Bank, there will be a big wave of investment.

Capital inflow of up to $10.77 crore is possible in Yes Bank, $7.43 crore in Indian Bank, $6.77 crore in Union Bank of India and $4.15 crore in Bank of India. This means that in the coming months, those stocks which till now were considered “sideline” by investors, can become the new heroes of the market.

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today’s market mood (SEBI new rules for Nifty Bank)

In today’s trading, most of the 12 shares of Nifty Bank remained in the green. Union Bank of India jumped more than 4%, while Bank of India, Indian Bank and Yes Bank registered gains of 1.5% to 2.5%.

On the other hand, big stocks like HDFC Bank, ICICI Bank, AU Bank and Kotak Mahindra Bank were in slight decline. It is clear that investors today expressed more confidence in the “new players”.

This new circular of SEBI has made one thing clear, now the era of “Big Three” is going to end in the banking sector. The banks which were dominating the index till now will have to play strongly to retain their place. The next face of Nifty Bank is going to change and this time the game will not be just about numbers but about trust.

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