The spinner could not justify his selection and leaked 95 from his 11 overs for the wicket of Marnus Labuschagne.
The third and deciding one-dayer will be played in Bengaluru on Sunday.
Left-arm spinner Nauman claimed a career-best 6-107 on a flat track where bowlers struggled for success.
Labuschagne is expected to bat at number three, with Smith to return to his favoured number four slot.
Iyer's teammate pacer Bhuvneshwar Kumar jumped three spots to 17th on the bowler rankings, while former captain Virat Kohli, who was rested for the Sri Lanka T20Is, fell out of the top 10 - he dropped five places to 15th.
New Zealand captain Kane Williamson (919) continued to lead the batting charts, with the Australian duo of Steve Smith (891) and Marnus Labuschagne (878) rounding up the top three.
Top order batsman Usman Khawaja has been omitted from Australia's annual list of 20 elite, contracted players in 2020 after falling out of favour with selectors midway through last year's Ashes. The 33-year-old lefthander has not played for the Test side since being dropped after the third match against England in Leeds last August.
Nathan Lyon captured a long-awaited 400th Test wicket and spun Australia to the brink of a comprehensive victory in the first Ashes Test in Brisbane on Saturday as England lost eight wickets in a stunning morning collapse on Day 4.
Australia dominated with bat, ball and in the field to post their second successive innings victory over Pakistan
The Hyderabad bowler thanked stand-in skipper Ajinkya Rahane for 'trusting the youngsters and showing confidence in me.'
Rohit Sharma will certainly leave a gaping hole at the top of the order, something that skipper Virat Kohli wouldn't have fancied at the onset of a gruelling two-month tour.
The plan was to vary the pace of his deliveries and create angles, since there was not much turn on offer, said all-rounder Ravindra Jadeja after his four-wicket haul enabled India dismiss Australia for 338 on Day 2 of the third Test, in Sydney, on Friday.
Langer said Australia are going with the same playing XI for the second Test unless and until something happens over the next few days.
Images from Day 3 of the third Test between Australia and India, at the SCG, on Saturday.
Cheteshwar Pujara is confident that history will repeat itself in Australia this time.
Kohli, who made 0 and 62 in Chennai, stayed in fifth spot among batsmen with 838 points. Kane Williamson (919) of New Zealand retained the top position with Steve Smith (891) of Australia in second spot.
FIXTURES (Start at 14.40 local, 0910 IST, 0340 GMT)
India's formidable pace attack will not be as effective as New Zealand speedster Neil Wagner in bowling bouncers during their upcoming tour of Australia, believes wicketkeeper Matthew Wade. Wagner bowling a barrage of bouncers and dismissing Australia's three leading batsmen -- Steve Smith, David Warner and Marnus Labuschagne -- a combined 10 times was one of the rare positives for New Zealand in an otherwise one-sided Test series last season.
IMAGES from the 1st Test played between Australia and New Zealand in Melbourne on Thursday
It took nearly a year longer than Australia hoped but Nathan Lyon ended his agonising wait for a 400th Test victim in style on Saturday during a match-winning four-wicket haul that sent England crashing to a stinging Ashes defeat at the Gabba.
Rohit Sharma was four not out, with Shubman Gill yet to score, after the injury-decimated tourists bowled Australia out for 294 in their second innings.
Australia were on 103 for 2 in the second innings, a lead of 197 runs, at the close of play on the third day of the third Test against India, in Sydney, on Saturday.
Australia have named the following 17-man squad for the five-Test Ashes series against England, which begins at Edgbaston on Aug. 1.
The 6'7" seam-bowling all-rounder's inclusion in Australia's line-up was expected after his impressive hundred in the first warm-up game against India A.
Captain Joe Root's defiance gave England hope of saving the Ashes series as his unbeaten 75 helped the hosts to 156-3 in their second innings on day three of the third Test at Headingley.
England fast bowler James Anderson says he enjoyed the "well-spirited" manner in which he and India captain Virat Kohli had a go at each other during the home Test series earlier this summer, describing the contest as his favourite of the many duels with the star batter.
Their confidence soaring high after five Test wins in a row, Australia skipper Time Paine says they can't wait to host India for a "mouth-watering" series later this year but revenge is certainly not on their minds. Australia had suffered their first ever Test series against India at home in the summer of 2018-19 when they missed prolific batsmen Steve Smith and David Warner, who were serving bans following a ball-tampering scandal that shook world cricket.
Here is a complete list of players, who failed to attract any bid in the IPL 2022
Rohit Sharma has overtaken captain Virat Kohli to become the top-ranked Test batsman from India.
Matthew Wade's defiant century proved in vain as England bowled Australia out for 263 to win the final Test at The Oval by 135 runs on Sunday and ensure the first drawn Ashes series since 1972.
'It hasn't been easy for the batters throughout the series'
Australia coach Justin Langer has urged the struggling batsmen in his team to step up and deliver when the fifth and final Ashes Test against England starts at The Oval on Thursday.
Khawaja to battle Head for openers' spot as Australia name squad for first two Tests.
Pacer Jhye Richardson picked up five wickets as Australia beat England by 275 runs in the day-night second Ashes Test at the Adelaide Oval on Monday to go 2-0 up in the five-match series.
The DRS system needs to be thoroughly looked into by the @ICC, especially for the 'Umpires Call'," Tendulkar tweeted on Monday.
Kohli gained two points for his half-century to get to 888 while Smith (911) lost 10 points in the table after scoring 1 and 1 in his two innings.
England captain Joe Root defended his decision to bat first in the opening Ashes Test against Australia and stood by the selections in their bowling unit despite going down to a heavy nine-wicket defeat at the Gabba on Saturday.
IMAGES from the 3rd ODI between India and Australia played in Bengaluru on Sunday
The Aaron Finch-led Australia side has moved to the top of the ICC Men's Cricket World Cup Super League points table following their 2-1 ODI series victory over India.
Former Australia captain Ricky Ponting was critical of Pujara's strike rate during the third Test in Sydney but the Test specialist was unmoved.