NSE Gets SEBI Nod To Launch Futures, Options On Nifty India FPI 150

India's capital markets are set to get a new derivatives product after the Securities and Exchange Board of India (SEBI) approved futures and options linked to the Nifty India FPI 150 Index.

The contracts will be listed on the National Stock Exchange (NSE) in Mumbai and will be settled in rupees. The approval expands NSE's derivatives offerings with a product linked to an index designed for overseas investors.

What Is The Nifty India FPI 150 Index?

Introduced in August 2025, the Nifty India FPI 150 Index follows 150 stocks chosen from the Nifty 500. The selection is based on factors such as foreign investibility, free-float market capitalisation and liquidity.

Stock selection is based on the six-month average foreign investible free-float market capitalisation. The methodology also focuses on liquidity and the availability of shares for overseas investors.

Each constituent's weight is determined by its foreign investible free-float market capitalisation.

Why Is NSE Launching These Derivatives Now?

The proposal to introduce these contracts first appeared in NSE's draft initial public offering (IPO) papers filed with SEBI last month. The exchange is expanding its product portfolio as it prepares for a proposed public listing later this year.

Derivatives remain NSE's biggest revenue driver, contributing more than two-thirds of its revenue in the previous financial year.

The approval also comes at a time when India is trying to attract overseas investors after months of foreign outflows from domestic equities.

While dollar-denominated derivatives linked to the same index are already available in GIFT City, trading activity has remained limited, with no outstanding contracts reported in the latest available data.

The new contracts will instead trade on the NSE in Mumbai, giving investors access to rupee-denominated futures and options.

What Could The New Contracts Mean For Investors?

The approval adds another index-based derivative product to the Indian market.

NSE already offers futures and options on several benchmarks, including the Nifty 50 and Nifty Bank indices.

The new contracts are built around stocks that satisfy foreign investibility criteria, making the index more closely aligned with the way many overseas institutions evaluate the Indian market.

The approval also follows recent regulatory changes in the equity derivatives segment. Over the past year, SEBI has tightened rules governing equity derivatives trading to curb excessive retail speculation, even as exchanges continue to receive approval for new contracts that meet regulatory requirements.

Neither NSE nor SEBI officially commented on the approval. An NSE spokesperson declined to comment, citing the exchange's pending IPO, while SEBI did not respond to queries seeking comment.

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