The National Stock Exchange of India (NSE) announced on July 16, 2026, that it has obtained regulatory approval from the Securities and Exchange Board of India (SEBI) to launch derivatives contracts based on the Nifty India FPI 150 Index. These new financial instruments will become available for trading from August 12, 2026, expanding the range of products in the equity derivatives segment.
The NSE will offer three serial monthly futures and options contracts on this index, with all contracts being cash-settled and expiring on the last Tuesday of their respective expiry months.
Understanding the Nifty India FPI 150 Index
The Nifty India FPI 150 Index is designed to track the performance of the top 150 stocks selected from the broader Nifty 500 index. This selection is based on the six-month average foreign investible free-float market capitalization, ensuring that the index reflects the most liquid and accessible stocks for foreign portfolio investors (FPIs).
The index weights each stock according to its foreign investible free-float market capitalization, providing a market-capitalization-weighted representation that emphasizes stocks with higher foreign investment potential. As of June 2026, the financial services sector holds the largest share in the index at 26.15%, followed by oil, gas, and consumable fuels at 10.03%, and healthcare at 7.51%.
Introduced on August 16, 2025, the index uses October 3, 2022, as its base date with a base value of 1000. It is rebalanced quarterly to maintain alignment with market dynamics and foreign investment trends.
Key Features of the New Derivatives Contracts
- Launch Date: August 12, 2026
- Contract Types: Index futures and index options
- Contract Cycles: Three serial monthly contracts available simultaneously
- Settlement: Cash-settled contracts expiring on the last Tuesday of the expiry month
- Underlying Asset: Nifty India FPI 150 Index, representing 150 highly liquid stocks
These derivatives will provide investors with new tools for hedging, portfolio diversification, and speculative trading, particularly focusing on stocks favored by foreign investors.
Why Introducing These Derivatives Matters
Sriram Krishnan, NSE’s Chief Business Development Officer, highlighted that adding derivatives on the Nifty India FPI 150 Index complements the existing suite of index derivatives. The index’s broad and diversified composition across multiple sectors, combined with its focus on liquidity and foreign investibility, makes it a suitable benchmark for investors looking to manage risk or gain exposure to India’s equity market.
This move also aligns with NSE’s broader strategy to enhance market participation and provide sophisticated financial instruments that cater to both domestic and international investors. The launch is expected to improve market depth and offer more precise hedging options linked to foreign investment flows.
Recently, NSE also signed a memorandum of understanding with the Bharat Metal Exchange to develop derivatives in non-ferrous metals, reflecting its commitment to expanding derivative offerings across asset classes.
Frequently Asked Questions
Q: What is the Nifty India FPI 150 Index?
A: It is an index tracking the top 150 stocks from the Nifty 500, selected based on foreign investible free-float market capitalization, aimed at reflecting stocks accessible to foreign investors.
Q: When will derivatives on this index start trading?
A: Trading of futures and options contracts on the Nifty India FPI 150 Index will begin on August 12, 2026.
Q: How are the derivatives contracts structured?
A: The NSE will offer three serial monthly futures and options contracts, all cash-settled and expiring on the last Tuesday of each expiry month.
