BSE Unveils All Derivative Stocks Index for F&O Linked BSE 500 Stocks

BSE has launched a new equity index that tracks stocks linked to derivatives trading. The index has been rolled out by its wholly owned arm, BSE Index Services. It focuses on derivative-eligible companies drawn from the BSE 500. 

Coverage of the Index 

The BSE All Derivative Stocks Index includes only those BSE 500 companies whose shares are available for trading in the futures and options (F&O) segment. Stocks that are not part of the derivatives market are excluded. As a result, the index shows a subset of the broader equity market rather than the full BSE 500. 

This approach allows the index to track companies that typically see regular participation in derivative trading. It separates the performance of derivative-linked stocks from companies that are only traded in the cash market. 

Index Design and Weighting 

Constituents of the index are weighted using a combination of float-adjusted market capitalisation and momentum. Float-adjusted market capitalisation considers only shares available for public trading, while momentum is based on recent price movement. 

To limit concentration, the weight of any single stock is capped at 10%. This rule applies regardless of the size or trading volume of the company and is meant to maintain balance across index constituents. 

Review and Rebalancing 

The index will be reviewed and rebalanced twice a year. At each review, the list of eligible stocks and their weights will be updated based on current market data and derivative eligibility criteria. 

Stocks may be added or removed during these reviews, depending on changes in eligibility and market capitalisation. Weight adjustments will also be carried out as part of the rebalancing process. 

Purpose of the Index 

The BSE All Derivative Stocks Index can be used as a benchmark for passive investment products such as exchange-traded funds and index funds. It may also serve as a reference for portfolios that focus on stocks with active derivatives trading. 

BSE Share Price Performance  

As of January 12, 2026, 10:28 am, BSE Ltd share price was trading at ₹2,777.60, a 4.05% increase from the previous closing price. 

Read More: SEBI Proposes Major Overhaul of Trading Framework at Stock Exchanges! 

Conclusion 

The launch of the BSE All Derivative Stocks Index adds a dedicated benchmark for tracking derivative-eligible stocks within the BSE 500. It provides a structured view of this segment based on defined rules and periodic reviews. 

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.   
 
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