The National Stock Exchange (NSE) has received clearance from the Securities and Exchange Board of India (SEBI) to roll out derivatives on the Nifty India FPI 150 Index. This significant expansion to NSE's equity derivatives suite is slated for launch on August 12, 2026, offering foreign portfolio investors (FPIs) an additional benchmark-linked instrument for hedging and risk management.
New Derivatives for FPIs
The upcoming derivatives contracts will be available within the equity derivatives segment. They will encompass three serial monthly index futures and index options. All contracts are designed for cash settlement and will expire on the last Tuesday of their respective expiry month, as per an official NSE press release.
The Nifty India FPI 150 Index itself was introduced on August 16, 2025, with a base date of October 3, 2022, and a base value of 1,000. It is meticulously crafted to mirror the performance of 150 large and highly liquid stocks, carefully chosen from the broader Nifty 500 universe.
Index Composition and Methodology
Constituents of the Nifty India FPI 150 Index are selected based on their six-month average foreign investible free-float market capitalization. This ensures that the index comprises stocks that are readily accessible and investable for foreign participants. The weight of each individual stock within the index is determined by its foreign investible free-float market capitalization. The index undergoes quarterly rebalancing to maintain its representation of the eligible investment universe.
As of June 2026, the financial services sector held the largest share in the index, accounting for 26.15%. This was followed by Oil, Gas & Consumable Fuels at 10.03% and Healthcare at 7.51%, underscoring the diversified nature of the benchmark across key sectors of the Indian economy.
NSE's Strategic Vision
Sriram Krishnan, Chief Business Development Officer at NSE, highlighted the strategic importance of this new offering. He stated that the introduction of derivatives on the Nifty India FPI 150 Index will complement the exchange's existing array of index derivative products. Krishnan emphasized that the index represents a broad and diversified segment of the Indian equity market, featuring 150 liquid stocks across various segments while prioritizing liquidity and investability. This makes it an ideal underlying asset for hedging and portfolio diversification strategies.
This launch further solidifies India's position in the global derivatives market. The NSE was recognized as the world's largest derivatives exchange by trading volume in calendar year 2025, according to the Futures Industry Association (FIA). It also ranked third globally in the equity segment based on the number of electronic order book trades, as reported by the World Federation of Exchanges (WFE).
With the addition of derivatives on the Nifty India FPI 150 Index, NSE aims to equip investors with another powerful tool for portfolio hedging, effective risk management, and gaining exposure to a diversified basket of stocks highly accessible to foreign investors.