NSE to Launch Derivatives on Nifty India FPI 150 Index from Aug 12, Gets SEBI Approval
NSE will launch derivative contracts based on the Nifty India FPI 15o Index on August 12 after getting SEBI’s clearance. The National Stock Exchange said on Thursday. The exchange said in a statement that it would futures and options contracts on the index in the equities derivatives sector, according to PTI.
The NSE will initially offer three contract cycles for serial monthly index futures and index options. On the last Tuesday of the expiry month, the cash settled contracts will expire.
According to the reports, the Nifty India FPI 150 Index seeks to follow the performance of the top 150 stocks chosen from the Nifty 500, ensuring foreign investors access and investability.
Six month average foreign investable free-float market capitalization, which includes the stocks with the highest free-float and most liquidity, is used to choose the top 150 stocks. Based on its foreign investible free-float market capitalization, each stock in the index has a specific weight.
(Disclaimer: Given the input is on an information basis, please seek professional advice.)
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