NSE gets SEBI nod to launch derivatives on Nifty India FPI 150 Index from August 12

The National Stock Exchange (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to introduce derivatives on the Nifty India FPI 150 Index, expanding its equity derivatives product suite and offering foreign portfolio investors (FPIs) another benchmark-linked hedging instrument. The exchange plans to launch the contracts on August 12, 2026.

The new derivatives contracts will be available in the equity derivatives segment and will comprise three serial monthly index futures and index options. All contracts will be cash-settled and expire on the last Tuesday of the expiry month, according to an NSE press release.

The Nifty India FPI 150 Index has been designed to reflect the performance of 150 large and liquid stocks selected from the broader Nifty 500 universe. The constituents are chosen based on their six-month average foreign investible free-float market capitalisation, ensuring that the index represents stocks that are accessible and investable for foreign investors. The weight of each stock is determined by its foreign investible free-float market capitalisation.

As of June 2026, the financial services sector accounted for the largest share in the index with a weight of 26.15%. It was followed by Oil, Gas & Consumable Fuels at 10.03% and Healthcare at 7.51%, highlighting the diversified nature of the benchmark across key sectors of the Indian economy.

The index itself was launched on August 16, 2025, with a base date of October 3, 2022, and a base value of 1,000. NSE said the methodology is based on foreign investible free-float and the index is rebalanced every quarter to ensure it continues to represent the eligible investment universe.

Commenting on the development, Sriram Krishnan, Chief Business Development Officer, NSE, said the introduction of derivatives on the Nifty India FPI 150 Index would complement the exchange's existing range of index derivative products.

"The introduction of derivatives on the Nifty India FPI 150 Index will further complement the existing index derivatives product suite. The Nifty India FPI 150 Index represents a broad and diversified segment of the Indian equity market, comprising 150 liquid stocks across multiple segments while maintaining a focus on liquidity and investibility, making it a suitable underlying for hedging and portfolio diversification," he said.

The launch comes as India's derivatives market continues to expand in scale and global relevance. According to NSE, it was the world's largest derivatives exchange by trading volume in calendar year 2025, as per statistics maintained by the Futures Industry Association (FIA). It also ranked third globally in the equity segment by the number of electronic order book trades, according to the World Federation of Exchanges (WFE).

With the addition of derivatives on the Nifty India FPI 150 Index, NSE aims to provide investors with another avenue for portfolio hedging, risk management and exposure to a diversified basket of stocks that are widely accessible to foreign investors.