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Informist, Thursday, Apr. 9, 2026

 

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--NSE Indices CEO: Debt products currently regulated by RBI 
--CONTEXT: NSE Indices CEO Aniruddha Chatterjee speaking at press conference 
--NSE Indices CEO: AUM of Nifty 50 index funds INR 2.62 tln as of Feb 28 
--NSE Indices CEO: Investors looking at ETFs as portfolio solutions 
--NSE Indices CEO: Preparing framework to help investors diversify assets 
--NSE Indices CEO:Making room for FIIs to invest in particular stock, sector 
--NSE Indices CEO: Have sufficient liquidity to replicate an index

 

MUMBAI - NSE Indices Ltd. will be ready with a framework to help investors invest in passive funds to diversify their assets, Chief Executive Officer Aniruddha Chatterjee told reporters at an event Thursday. Chatterjee said he is in talks with people outside India to come up with innovative ideas to help them invest in passive funds.

 

Chatterjee said one of the key differences for foreign investors trying to invest in India is that they are subject to holding limitations. These limitations can be tricky as they vary across sectors depending on the stocks chosen.

 

NSE Indices is redrawing a methodology taking into consideration factors like sectoral limitations to create indices to make investing easier for foreign investors. "So what we have done now is that besides looking at liquidity and other aspects of index creation, we are also now looking at the foreign investors investment factor by means of determining what is the room available to a foreign investor to invest into a specific stock in a specific sector," Chatterjee said.

 

In the past few years, there has been a shift in the passive funds industry and people are looking at passive investment vehicles such as exchange-traded funds and index funds as portfolio solutions instead of trying to use these products to create a diversified portfolio, Chatterjee said. As of Jan. 30, assets under management of ETFs amounted to INR 11.82 trillion.

 

Between April 2025 and January, there was a net investment of INR 1.49 trillion in ETFs. There were 314 ETF schemes available in NSE indices as of Jan. 30, up sharply from just 87 at the end of March 2020. Further, he said, the markets are very liquid now and conditions are conducive to create fresh indices and passive products.

 

Asked about the growth in assets under management of passive funds, Chatterjee said the previous year was volatile and some investors withdrew from passive funds because of the uncertainty. However, as the market starts growing again, assets under management of passive funds are likely to see double-digit growth in the years to come, he said. As of February, the assets under management of index funds tracking Nifty indices amounted to INR 2.62 trillion.  End

 

Reported by Gopika Balasubramanium and Suryash Kumar

Edited by Rajeev Pai

 

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