The National Stock Exchange (NSE) has received approval from SEBI to launch futures and options (F&O) contracts on the Nifty India FPI 150 Index from August 12, 2026. These will be cash-settled contracts, with 3 serial monthly futures and options available. The contracts will expire on the last Tuesday of each expiry month.
What is the Nifty India FPI 150 Index?
- It tracks the top 150 stocks from the Nifty 500 that are most accessible and investable for Foreign Portfolio Investors (FPIs).
- Stocks are selected based on their 6-month average foreign investible free-float market capitalization.
- Weightage is also assigned using foreign investible free-float market cap, ensuring the index reflects stocks where FPIs can meaningfully invest.
- The index is rebalanced quarterly.
Why is NSE launching this?
The new derivative contract gives:
- FPIs a dedicated instrument to hedge their India equity exposure.
- Domestic institutions and traders another benchmark for trading and portfolio hedging.
- A product focused on stocks with high foreign ownership capacity and liquidity, unlike broader indices such as Nifty 50 or Nifty 500.
Key facts
- Launch date: 12 August 2026
- Settlement: Cash-settled
- Contract cycle: 3 serial monthly futures & options
- Expiry: Last Tuesday of the expiry month
- Top sector weights (June 2026):
- Financial Services: 26.15%
- Oil, Gas & Consumable Fuels: 10.03%
- Healthcare: 7.51%
Why it matters
This is another step in expanding India’s derivatives market. Instead of tracking only the largest companies (like the Nifty 50), the Nifty India FPI 150 focuses on the most liquid and FPI-friendly stocks, giving investors a more targeted way to hedge or trade foreign-investor-heavy segments of the Indian market. It could also increase trading activity and improve price discovery in these stocks.
Link to Circular: https://nsearchives.nseindia.com//web/pressrelease/2026-07/PR_cc_16072026__20260716095806.pdf
