SEBI Clears NSEs Nifty India FPI 150 Index, Trading To Begin On August 12

The National Stock Exchange (NSE) has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to introduce derivatives on the Nifty India FPI 150 Index, expanding its suite of index-based products.

Trading in the new contracts will commence on August 12, 2026, the exchange said on Thursday.

The index will comprise three serial monthly futures and options contracts, all of which will be cash settled. These contracts will expire on the last Tuesday of each expiry month, in line with the exchange's existing framework for index derivatives.

Sriram Krishnan, Chief Business Development Officer at NSE, said the index would offer broad exposure to a diversified basket of 150 liquid stocks across sectors while maintaining a strong emphasis on investibility and liquidity making it an effective benchmark for portfolio diversification and hedging strategies.

The Nifty India FPI 150 Index is designed to capture the performance of the top 150 companies within the Nifty 500 based on their six-month average foreign investible free-float market capitalisation.

According to the exchange, the methodology aims to create a diversified benchmark of liquid, high free-float stocks that are accessible to foreign investors.

The benchmark was introduced on August 16, 2025, with reference date of October 3, 2022, and a starting value of 1,000 as it is assessed and adjusted quarterly employing a foreign investable free-float approach.

The financial services, as of June, represented the largest portion of the index at 26.15%, with oil, gas, and consumable fuels at 10.03% and healthcare at 7.51%.

The addition of the Nifty India FPI 150 will further expand NSE's index derivatives portfolio which already includes contracts linked to the Nifty 50, Nifty Bank, Nifty Financial Services, Nifty Next 50 and Nifty Midcap Select. Among these, only the Nifty 50 currently has weekly derivative contracts, in accordance with SEBI's framework.

The introduction of derivatives based on the Nifty India FPI 150 reflects the continued broadening of India's derivatives market and provides investors with another benchmark to manage market exposure.

As foreign participation in domestic equities continues to grow, products linked to investible, high free-float indices could contribute to deeper market liquidity, more efficient price discovery and a wider range of risk management options.