NSE Secures SEBI Nod to Launch Derivatives on Nifty India FPI 150 Index by August 2026

NSE Secures SEBI Nod to Launch Derivatives on Nifty India FPI 150 Index by August 2026​

The National Stock Exchange of India (NSE) has received official approval from the Securities and Exchange Board of India (SEBI) to introduce derivatives on the Nifty India FPI 150 Index (NIFTYFPI). These new contracts are scheduled to enter the Equity Derivatives segment starting August 12, 2026.

This move marks a significant expansion for the exchange as it seeks to provide investors with broader tools for navigating the Indian equity markets. The inclusion of these derivatives will offer traders a new mechanism to engage with one of the specific indices designed for foreign investment accessibility.

Structure and Trading Mechanics of NIFTYFPI Derivatives​

The NSE plans to offer three serial monthly index futures and options contracts for this segment. These products will be cash settled, ensuring a streamlined experience for participants in the derivatives market.

To maintain consistency with standard exchange practices, the contracts will expire on the last Tuesday of every expiry month. This structure provides a clear timeframe for traders to manage their positions within the Nifty India FPI 150 Index framework.

Index Composition and Target Investor Base​

The Nifty India FPI 150 Index is designed to track the performance of top 150 stocks selected from the Nifty 500. The primary objective of this index is to ensure accessibility and investability for foreign investors by focusing on high free-float stocks.

Selection for the index is based on a rigorous six-month average foreign investible free-float market capitalization criterion. Every stock within the index is weighted specifically based on its foreign investible free-float market capitalization to reflect its true importance in the portfolio.

Sectoral Weighting and Historical Performance​

As of June 2026, the index shows significant concentration in the financial services sector, which holds a weight of 26.15%. Other notable contributors include Oil, Gas & Consumable Fuels at 10.03% and Healthcare with a 7.51% weight.

The index was originally introduced on August 16, 2025, using October 03, 2022, as the base date with a value of 1000. It operates on a methodology based on Foreign investible free-float and is rebalanced on a quarterly basis to ensure it remains representative of current market dynamics.

Strategic Utility for Hedging and Portfolio Diversification​

Sriram Krishnan, Chief Business Development Officer at NSE, emphasized that the introduction of these derivatives will complement the existing index derivatives product suite. He noted that the Nifty India FPI 150 Index represents a broad and diversified segment of the Indian equity market.

By maintaining a strict focus on liquidity and investibility across multiple segments, the index serves as a suitable underlying for both hedging and portfolio diversification. This offering provides a vital tool for investors seeking to manage risk while participating in the broader Indian economic landscape.