NSE Gets SEBI Approval to Launch Derivatives on Nifty India FPI 150 Index

The National Stock Exchange of India (NSE) has secured approval from the Securities and Exchange Board of India (SEBI) to launch derivatives contracts on the Nifty India FPI 150 Index, starting August 12. Introduced in August 2025, the index tracks 150 stocks from the Nifty 500, focusing on accessibility and investability for foreign portfolio investors. This expansion of derivatives offerings comes as the NSE prepares for its highly anticipated Initial Public Offering (IPO) later this year.

Jul 16, 2026 - 06:13

NSE Gets SEBI Approval to Launch Derivatives on Nifty India FPI 150 Index

The facade of the National Stock Exchange building in Mumbai, India, symbolizing the country's primary financial markets

MUMBAI — The National Stock Exchange of India (NSE) announced on Thursday that it has received regulatory clearance from the Securities and Exchange Board of India (SEBI) to introduce derivatives contracts on the Nifty India FPI 150 Index. The new cash-settled contracts are scheduled to go live within the equity derivatives segment starting August 12.

The regulatory approval adds another significant index-based derivative product to the Indian market, specifically designed to align with how overseas institutions evaluate Indian equities.

Boosting Foreign Investability and Hedging

Introduced last year in August 2025, the Nifty India FPI 150 Index tracks the performance of 150 stocks carefully selected from the broader Nifty 500. The selection criteria emphasize accessibility and investability for foreign investors.

The index's methodology revolves around the six-month average foreign investable free-float market capitalization of its constituents, filtering for the most liquid and high free-float stocks. According to the NSE, this strong emphasis on liquidity and foreign investable market capitalization makes it an exceptionally suitable underlying asset. It offers both foreign and domestic investors a robust additional tool for portfolio diversification and risk hedging.

The exchange plans to offer three serial monthly index futures and index options contract cycles, with the cash-settled contracts slated to expire on the last Tuesday of the expiry month.

Strategic Expansion Ahead of the NSE IPO

The timing of this regulatory nod is particularly noteworthy. The expansion of its lucrative derivatives portfolio comes as India's largest bourse actively prepares for its long-awaited Initial Public Offering (IPO) later this year.

The proposal to introduce these specific contracts first appeared in the NSE's draft IPO papers filed with SEBI last month, highlighting the exchange's strategy to broaden its product suite and attract diverse trading volumes from overseas investors ahead of its historic public listing.