"We took the decision at an informal meeting of 18-20 members that no Indian cricketer will be given permission to take part in the league as it is being organised by a private party based in Singapore," BCCI President Shashank Manohar told the Press Trust of India news agency.
"The Board’s policy is not to allow players to take part in private party-organised tournaments.
"We have already informed Sri Lanka Cricket (SLC) about it."
The ACC said Defending champions Sri Lanka will be joined by Pakistan,India and Bangladesh in the tournament with a total of seven matches at a venue that was yet to be decided.
Sri Lanka beat India in the final of the last edition held in Pakistan a year ago.
Australia: Ricky Ponting (capt), Michael Clarke, Nathan Bracken, Callum Ferguson, Brad Haddin (wk) Nathan Hauritz, Ben Hilfenhaus, James Hopes, Michael Hussey, Mitchell Johnson, Brett Lee, Peter Siddle, Adam Voges, Shane Watson, Cameron White.
England: Andrew Strauss (capt), James Anderson, Ravi Bopara, Tim Bresnan, Stuart Broad, Paul Collingwood, Joe Denly, Andrew Flintoff, Eoin Morgan, Matt Prior (wk), Adil Rashid, Owais Shah, Ryan Sidebottom, Graeme Swann, Luke Wright.
India: Sachin Tendulkar, Gautam Gambhir, Rahul Dravid, Suresh Raina, Yuvraj Singh, MS Dhoni (capt/wk), Yusuf Pathan, Harbhajan Singh, Praveen Kumar, Ishant Sharma, Ashish Nehra, RP Singh, Amit Mishra, Dinesh Karthik, and Abhishek Nayar
New Zealand: Daniel Vettori (capt), Shane Bond, Neil Broom, Ian Butler, Brendon Diamanti Grant Elliott, Martin Guptill, Gareth Hopkins, Brendon McCullum, Kyle Mills, Jacob Oram Jeetan Patel, Jesse Ryder, Ross Taylor, Daryl Tuffey
Pakistan: Younis Khan (capt), Imran Nazir, Misbah-ul-Haq, Umar Akmal, Shoaib Malik, Shahid Afridi, Naved-ul Hasan, Fawad Alam, Mohammad Yousuf, Kamran Akmal (wk), Umar Gul, Mohammad Aamer, Mohammad Asif, Rao Iftikhar, Saeed Ajmal.
Sri Lanka: Kumar Sangakkara (capt), Sanath Jayasuriya, Tillakaratne Dilshan, Upul Tharanga, Mahela Jayawardene, Thilan Samaraweera, Chamara Kapugedera, Angelo Mathews, Muttiah Muralitharan, Ajantha Mendis, Thilan Thushara, Nuwan Kulasekara, Dammika Prasad, Lasith Malinga, Thilina Kandamby
South Africa: Graeme Smith (capt), Johan Botha, Hashim Amla, Mark Boucher (wk), AB de Villiers, JP Duminy, Herschelle Gibbs, Jacques Kallis, Albie Morkel, Makhaya Ntini, Wayne Parnell, Robin Peterson, Dale Steyn, Lonwabo Tsotsobe, Roelof van der Merwe
West Indies: Floyd Reifer (capt), Darren Sammy, David Bernard, Tino Best, Royston Crandon, Travis Dowlin, Andre Fletcher, Nikita Miller, Daren Powell, Kieran Powell, Dale Richards, Kemar Roach, Devon Smith, Gavin Tonge, Chadwick Walton (wk).
Australia's 2-1 Ashes defeat, confirmed with a heavy 197-run loss at The Oval on Sunday, has cost them their No. 1 spot in the ICC Test rankings.
Australia is now dropped to 4th place and South Africa topping the rankings list for tests.
It is the first time the Australians have lost their grip on the top spot since 2003, when the ICC introduced its current ranking system.
The defeat has cost them eight points but despite the series result they remain ahead of their arch rivals England, who are in fifth place. England gained six points but are still 11 behind Australia.
South Africa now the No. 1 Test team in the world, followed by Sri Lanka at the 2nd place while india reaching the 3rd spot.