NSE to Introduce Futures and Options on Nifty India FPI 150 Index on 12th August
NSE will introduce futures and options contracts on the Nifty India FPI 150 Index from August 12, 2026. The new derivatives aim to provide foreign investors with a better hedging tool while expanding India's index derivatives market.
Nifty India FPI 150: NSE will launch futures and options on the Nifty India FPI 150 Index from August 12, 2026, after SEBI approval. The contracts are designed to help investors hedge exposure to Indian stocks with foreign investment capacity and expand the exchange's derivatives offerings.
Nifty India FPI 150: Starting from 12th August 2026, National Stock Exchange (NSE) will begin offering futures and options (F&O) on Nifty India FPI 150 Index after receiving authorization from the Securities and Exchange Board of India (SEBI).
These new derivatives will enable investors to hedge or take exposure on a group of Indian stocks that are available for foreign institutional investors.
As part of this offering, NSE will provide 3 series of cash-settled monthly futures and options. These contracts will expire on the last Tuesday of the month, consistent with the NSE’s other index derivatives.
What is Nifty India FPI 150 Index?
NSE has designed Nifty India FPI 150 Index, which includes 150 large and liquid Indian companies in which Foreign Portfolio Investors (FPIs) can invest without violating the ownership restrictions set by regulators.
To build the index, NSE Indices takes Nifty 500 and then ranks companies by their 6 month average of foreign investable free-float market capitalization. The Index does not include companies that are close to or have reached the foreign ownership limit. The Index is reviewed and rebalanced on a quarterly basis, in March, June, September, and December.
As of June 2026, the largest sector in the Index is financial services, with a weight of 26.15%, followed by oil, gas and consumable fuels at 10.03% and healthcare at 7.51%.
The benchmark commenced on August 16, 2025. Its base value was 1,000, and the base date was October 3 2022.
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Why it matters
The launch is happening as foreign investors are reducing their investments in Indian equities. As of early June 2026, FPIs were net sellers in the Indian stock market with total outflows of more than ₹2.67 lakh crore. In March 2026, Indian equities had a $12 billion selloff by foreign investors due to increased tensions in West Asia and elevated crude oil prices.
New derivatives are expected to provide a more precise hedging opportunity compared to Nifty 50, since Nifty India FPI 150 only includes stocks with adequate foreign investment capacity.
With new contracts, NSE is expanding its current derivatives ecosystem, which contains derivatives for Nifty 50, Bank Nifty, Nifty Financial Services, Nifty Next 50, and Nifty Midcap Select. Currently, Nifty 50 is the only NSE index that has a weekly expiry, due to a SEBI initiative to curtail irrational speculation in index options.
NSE's Chief Business Development Officer, Mr. Sriram Krishnan, stated that the index is suitable for portfolio hedging and diversification because it focuses on sectoral diversity and stocks that are still available for foreign investment."