BSE gets SEBI nod to launch derivatives on BSE Focused Midcap Index

The contracts will expire on the last Thursday of each expiry month, in line with the standard derivatives expiry cycle in Indian markets.

BSE has received approval from the Securities and Exchange Board of India (SEBI) to introduce derivative contracts on its newly introduced BSE Focused Midcap Index, marking a significant expansion in its equity derivatives offerings.

The BSE Focused Midcap Index tracks the performance of the top 20 mid-cap stocks selected based on free-float market capitalisation. The index is designed to reflect the movement of prominent mid-sized companies and provide market participants with a focused benchmark for this segment.

Following the regulatory approval, the exchange will offer cash-settled monthly index futures and monthly index options on the new index. The contracts will expire on the last Thursday of each expiry month, in line with the standard derivatives expiry cycle in Indian markets.

In a regulatory filing submitted to the National Stock Exchange of India Limited, BSE said the launch is subject to operational readiness and necessary circulars to be issued by the exchange. The development has also been disclosed on the company’s official website.

The index has gained around 16.8 percent over the last one year and around 3 percent over the last 6 months.