Big move before IPO: NSE to launch Nifty India FPI 150 Futures & Options from August 12 - Check Details
The NSE has received SEBI approval to launch futures and options on the Nifty India FPI 150 Index from August 12, enhancing its index derivative offerings for investor hedging and diversification with a focus on liquidity.
Nifty India FPI 150 Index: The National Stock Exchange (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch futures and options (F&O) contracts on the Nifty India FPI 150 Index from August 12. The approval comes as the country's largest stock exchange prepares for its long-awaited initial public offering (IPO).
The new contracts will be introduced in the equity derivatives segment as part of NSE's efforts to broaden its suite of index derivative products. According to the exchange, the Nifty India FPI 150 Index is designed with a focus on liquidity and investability, offering investors an additional instrument for hedging and portfolio diversification.
Commenting on the launch, Sriram Krishnan, Chief Business Development Officer, NSE, said, "The Nifty India FPI 150 Index represents a diversified basket of 150 liquid stocks across sectors while maintaining a focus on liquidity and investibility, making it a suitable underlying index for hedging and portfolio diversification." He added that the new contracts would complement the exchange's existing index derivatives offerings.
What is the Nifty India FPI 150 Index?
The Nifty India FPI 150 Index, introduced on August 16, 2025, tracks the performance of the top 150 stocks selected from the Nifty 500 universe that are accessible and investible for foreign portfolio investors (FPIs).
The index constituents are selected based on their six-month average foreign investible free-float market capitalisation, ensuring exposure to the most liquid stocks with high foreign investible free float. The weight of each constituent is determined by its foreign investible free-float market capitalisation.
The index has a base date of October 3, 2022, and a base value of 1,000. It follows a foreign investible free-float methodology and is rebalanced quarterly.
As of June 2026, the financial services sector had the highest weight in the index at 26.15%, followed by Oil, Gas & Consumable Fuels at 10.03% and Healthcare at 7.51%.
What products will be launched?
NSE said the launch of derivatives on the Nifty India FPI 150 Index will provide market participants with another benchmark for trading and risk management. Since the index comprises liquid stocks that meet foreign investment eligibility criteria, the contracts can be used by investors to hedge portfolios or gain exposure to a diversified basket of FPI-accessible companies.
The exchange will introduce three serial monthly index futures and three serial monthly index options contracts on the Nifty India FPI 150 Index. The contracts will be cash settled and will expire on the last Tuesday of the expiry month.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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