BSE Set to Roll Out Monthly Futures, Options on Focused Midcap Index

BSE Limited has received approval from the Securities and Exchange Board of India (SEBI) to introduce derivative contracts on its newly launched BSE Focused Midcap Index, expanding its footprint in the equity derivatives segment.

What Is the BSE Focused Midcap Index?

The BSE Focused Midcap Index tracks the performance of the top 20 mid-cap stocks selected based on free-float market capitalisation. It is designed to serve as a concentrated benchmark reflecting the performance of leading mid-sized companies.

Futures and Options to Be Introduced

Following regulatory clearance, BSE will roll out cash-settled monthly index futures and monthly index options on the index. These contracts will expire on the last Thursday of each month, in line with the standard derivatives expiry cycle in Indian markets.

In a regulatory filing with the National Stock Exchange of India Limited, BSE stated that the launch remains subject to operational preparedness and the issuance of relevant circulars. The exchange has also updated the information on its official website.

Index Performance Snapshot

The BSE Focused Midcap Index has gained around 16.8% over the past year and approximately 3% in the last six months, indicating steady momentum in the mid-cap segment.

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