BSE gets Sebi approval for derivatives on BSE Focused Midcap index

Exchange to launch cash-settled monthly futures and options on BSE Focused Midcap Index, widening its derivatives offerings

Stock exchange BSE has received approval from market regulator Securities and Exchange Board of India (Sebi) to launch derivative contracts on the BSE Focused Midcap Index. At present, the exchange offers derivatives only on the Sensex and Bankex indices. With the approval, its derivatives basket will widen to three indices.

 

“Exchange will offer cash-settled monthly index futures and monthly index options with expiry date as the last Thursday of the expiry period,” BSE noted.

 

The BSE Focused Midcap Index measures the performance of the top 20 constituents based on free-float market capitalisation within the midcap segment.

 

In comparison, the National Stock Exchange of India (NSE) offers derivatives on five indices, including the Nifty, Nifty Bank, Nifty Financial Services, Nifty Midcap Select and Nifty Next50.

 

 

However, as per the mandate by Sebi, weekly expiries are limited to one benchmark index per exchange. The norms were brought in to curb frenzy and speculation in the futures and options segment.