NSE Gets SEBI Approval to Launch Nifty India FPI 150 Index Derivatives from August 12

17 Jul 2026 , 10:10 AM

The National Stock Exchange (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch derivatives contracts on the Nifty India FPI 150 Index, marking another significant step in the expansion of India’s equity derivatives market. The new futures and options contracts will be available for trading from August 12, 2026.

The launch comes at a crucial time as NSE prepares for its long-awaited Initial Public Offering (IPO) and continues to broaden its product offerings for domestic and global investors.

What is the Nifty India FPI 150 Index?

The Nifty India FPI 150 Index, introduced in August 2025, tracks the performance of the top 150 stocks from the Nifty 500 that are accessible and investable for Foreign Portfolio Investors (FPIs). The index is designed to represent a diversified basket of India’s most liquid and foreign investor-friendly companies.

The constituent stocks are selected based on their six-month average foreign investible free-float market capitalization, while individual stock weights are determined using foreign investible free-float market capitalization. The index is rebalanced on a quarterly basis to ensure it continues to reflect the evolving market.

Details of the New Derivatives Contracts

Beginning August 12, 2026, NSE will introduce the contracts in the equity derivatives segment. The exchange will offer:

• Three serial monthly index futures contracts.
• Three serial monthly index options contracts.
• Cash-settled contracts.
• Expiry on the last Tuesday of the respective expiry month.

These products are expected to provide investors with additional opportunities to hedge their portfolios and manage market risk more efficiently.

A New Tool for Foreign Investors

According to NSE, the Nifty India FPI 150 Index has been developed with a strong focus on liquidity and investability, making it an ideal benchmark for foreign investors.

The exchange believes the introduction of derivatives on this index will enhance portfolio diversification, improve risk management, and complement its existing suite of index derivatives.

The index represents a broad and diversified segment of the Indian equity market while maintaining a strong emphasis on liquidity and foreign investor accessibility, making it a suitable underlying benchmark for hedging strategies.

Sector Composition Reflects India’s Growth Story

As of June 2026, the Nifty India FPI 150 Index has a diversified sectoral allocation led by:

• Financial Services: 26.15%
• Oil, Gas & Consumable Fuels: 10.03%
• Healthcare: 7.51%

The broad sector representation makes the index a comprehensive indicator of India’s investable equity universe for global investors.

Why This Matters

The launch of derivatives on the Nifty India FPI 150 Index is expected to deepen India’s capital markets by offering FPIs and institutional investors an efficient hedging instrument linked to highly liquid Indian stocks. The move also strengthens NSE’s position as a leading global derivatives exchange and aligns with its broader strategy of expanding innovative financial products ahead of its anticipated IPO.

With growing foreign participation in Indian equities and increasing demand for sophisticated risk management tools, the new derivatives contracts are expected to boost trading activity, improve market liquidity, and further enhance India’s attractiveness as a global investment destination.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing.