BSE gets Sebi nod to launch 'Focused Midcap Index' futures and options contracts

The Bombay Stock Exchange (BSE) has secured approval from the Securities and Exchange Board of India (Sebi) to introduce futures and options contracts based on its new 'BSE Focused Midcap Index.' This index tracks the performance of the top 20 mid-cap companies selected by their free-float market capitalization, aiming to provide investors with concentrated exposure to leading mid-sized firms. The initiative comes as exchanges adapt to a revised derivatives framework that limits them to a single weekly expiry, thereby encouraging a shift towards monthly contracts. BSE plans to offer cash-settled monthly index futures and options, with expirations set for the last Thursday of each month. This launch is particularly timely, as recent market volatility in broader midcap indices has heightened interest in targeted investment strategies. By focusing on a select group of quality mid-cap stocks, BSE is positioning its new derivative products as valuable tools for traders and investors, facilitating hedging and directional strategies that align with midcap performance under the updated regulatory landscape.