BSE Secures SEBI Approval to Introduce Derivatives for Sensex Next 30 Index
Synopsis
The Bombay Stock Exchange has received SEBI's approval to create derivatives contracts for the Sensex Next 30 index. This new initiative aims to enhance investment opportunities by tracking the largest liquid companies outside the Sensex 30.
Key Takeaways
BSE has received SEBI approval for derivatives on the Sensex Next 30 index.
New contracts will include cash-settled monthly index futures and monthly index options .
The index tracks major companies not in the Sensex 30 .
Contracts will expire on the last Thursday of the month .
BSE also launched new government securities indices .
Mumbai, March 4 (NationPress) The Bombay Stock Exchange has obtained the green light from the Securities and Exchange Board of India to introduce derivatives contracts linked to the BSE Sensex Next 30 index.
The BSE announced this development in a notice released on Wednesday, indicating that it will roll out cash-settled monthly index futures and monthly index options on the newly established index.
The Sensex Next 30 index is designed to monitor the next largest and most liquid companies within the BSE 100 that participate in the derivatives segment but are excluded from the Sensex 30 index.
The contracts will expire on the last Thursday of the month in which they are set to conclude. Nevertheless, the exchange has yet to reveal the official date for the commencement of trading.
Currently, the BSE provides futures and options contracts for the Sensex, featuring both weekly and monthly expirations.
Additionally, it offers derivative contracts on Sensex 50 and BANKEX, both of which operate with monthly expirations.
Last month, BSE Index Services, a subsidiary of the exchange, introduced two new indices for government securities.
These consist of the BSE 4-8 Year G-Sec Index and the BSE 8-13 Year G-Sec Index. These indices aim to support investors in executing passive investment strategies, including exchange-traded funds and index funds.
Moreover, they can serve as benchmarks for portfolio management services, mutual fund schemes, and various other fund portfolios.
The exchange noted that these G-Sec indices will undergo monthly rebalancing, focusing on tracking the performance of the three most liquid government securities within their respective maturity categories, each boasting a minimum outstanding issuance exceeding Rs 7,500 crore.
The addition of these indices is expected to provide investors with broader market opportunities.
In parallel, the BSE has also revised its equity derivatives segment by deciding to exclude Housing & Urban Development Corp., Piramal Pharma Ltd., Tata Technologies Ltd., and Torrent Power Ltd. from this segment.
The futures and options contracts for these companies will cease trading starting May 4, 2026, and no new expiry contracts will be introduced, as indicated in a notice to trading members.
Point of View
The recent approval by SEBI for the BSE to launch derivatives on the Sensex Next 30 index represents a significant step towards enhancing investment options within the Indian financial market. This move is expected to attract more investors and diversify available market instruments.
NationPress
11 May 2026
Frequently Asked Questions
What is the Sensex Next 30 index?
The Sensex Next 30 index tracks the next largest and most liquid companies in the BSE 100 that are not part of the Sensex 30 index.
When will the derivatives contracts be launched?
The BSE has yet to announce the official launch date for trading derivatives contracts on the Sensex Next 30 index.
What types of contracts will be available?
The BSE will offer cash-settled monthly index futures and monthly index options on the new index.
What recent changes have been made in the equity derivatives segment?
The BSE has decided to exclude certain companies from the derivatives segment, with trading for their contracts set to cease on May 4, 2026.
What are the new government securities indices launched by BSE?
The new indices include the BSE 4-8 Year G-Sec Index and the BSE 8-13 Year G-Sec Index, aimed at supporting passive investment strategies.
