India’s leading stock exchange BSE Limited has received approval from the Securities and Exchange Board of India (SEBI) to introduce derivatives contracts on the BSE Sensex Next 30 Index, expanding its derivatives product suite and offering traders another benchmark to hedge and speculate on large-cap stocks beyond the main Sensex.
The exchange said it will launch cash-settled monthly index futures and options on the new index, with contracts set to expire on the last Thursday of each expiry month, following the standard derivatives settlement cycle in Indian markets.
The move is expected to deepen participation in index derivatives while providing investors with exposure to the next tier of large-cap companies within the BSE ecosystem.
The BSE Sensex Next 30 Index tracks the next 30 largest and most liquid companies within the BSE 100 universe that are part of the derivatives segment but not included in the benchmark Sensex 30 index.
Essentially, it represents companies that are just below the frontline blue-chip group. These stocks often have strong institutional participation and market liquidity, making them suitable candidates for derivatives trading.
By introducing futures and options on this index, BSE aims to broaden the tradable universe for derivatives market participants, allowing traders to take directional bets or hedge exposure to emerging large-cap stocks.
Market participants typically prefer index derivatives because they offer diversified exposure with lower stock-specific risk, while also serving as tools for portfolio hedging and tactical allocation.
The product launch comes at a time when BSE’s financial performance has shown strong momentum.
For Q3 FY26, the exchange reported a net profit of ₹602 crore, marking a 174% year-on-year increase, while net profit margin expanded to 45% from 26% a year earlier. Revenue for the quarter rose 62% YoY to ₹1,244 crore, compared with ₹768.1 crore in the corresponding quarter of the previous fiscal.
Consolidated operating EBITDA surged to ₹732 crore, nearly tripling from the previous year, with operating margins improving to 59% from 31%.
During the quarter, 99 companies were listed across the main and SME boards, raising a combined ₹97,657 crore. BSE also recorded 772 crore equity derivatives contracts, generating ₹784 crore in revenue.
With SEBI’s approval for derivatives on the Sensex Next 30 Index, BSE is strategically expanding its derivatives ecosystem and strengthening its position in India’s fast-growing capital markets. If liquidity builds up in these contracts, the new index derivatives could become another important trading benchmark for institutional and retail participants alike.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 5, 2026, 11:35 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
