BSE And MSCI Explore Index Derivatives
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BSE and MSCI will explore India-listed futures and options linked to MSCI indexes. The proposed derivatives could expand BSE’s offerings, strengthen hedging tools and attract greater institutional participation.
Bombay Stock Exchange (BSE) Ltd. has signed an agreement with MSCI to examine the launch of futures and options contracts linked to MSCI indexes in India. The proposed products could expand BSE’s derivatives portfolio and give investors another tool to manage exposure to Indian markets.
Any launch would depend on receiving the necessary regulatory approvals. The agreement covers several MSCI indexes, with BSE set to assess the feasibility of offering related derivatives contracts in India.
Growing Demand For Index-Based Products
The initiative comes as index investing continues to expand across global financial markets. BSE said the growing volume of capital benchmarked to indexes has increased demand for futures and options.
The wider use of exchange-traded funds has also made index-based products easier to trade. Index derivatives can help fund managers manage portfolio flows and adjust their equity exposure.
Institutional investors commonly use such contracts to hedge portfolios and change market exposure. They can also take positions on an index without trading every underlying stock.
MSCI indexes are among the most widely followed benchmarks globally. BSE said more than $21 trillion in assets under management were linked to MSCI indexes as of 31 December 2025.
BSE Seeks To Strengthen Derivatives Business
The agreement forms part of BSE’s broader effort to expand its role in India’s capital markets.
BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy said the partnership would create another route for investors to access and hedge Indian market exposure.
Founded in 1875, BSE is Asia’s oldest stock exchange and one of the world’s largest by the number of listed companies. Its products include equities, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, and securities lending and borrowing.
If approved, the products could also strengthen BSE’s position in the index derivatives market, where liquidity and institutional participation are critical to success.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
