BSE looks to launch MSCI-linked futures and options in India

BSE Ltd has entered into an agreement with MSCI to explore the launch of futures and options contracts in India linked to MSCI indexes, a move that could expand the exchange’s derivatives offering and give investors another way to manage India market exposure. The proposed products will be subject to regulatory approvals.

The exchange said the agreement covers a number of MSCI indexes. BSE will explore launching derivatives contracts linked to these indexes in India.

The move comes at a time when index-based investing has grown sharply across global markets. BSE said the amount of capital benchmarked to indexes and the improved tradability of index-based products through exchange-traded funds have increased the need for futures and options.


Derivatives linked to indexes can help fund managers handle fund flows and manage equity exposure. Such contracts are often used by institutional investors to hedge portfolios, adjust market exposure and trade index views without buying or selling all underlying stocks.

MSCI indexes are among the world’s most widely tracked benchmarks. According to BSE, more than $21 trillion in assets under management were linked to MSCI indexes as of December 31, 2025.

For BSE, the partnership is aimed at strengthening its position in India’s capital markets and broadening access to index-linked products. The exchange has been working to deepen its derivatives business at a time when investor participation in index products and risk-management tools has increased.

Sundararaman Ramamurthy, MD and CEO of BSE, said the agreement is aimed at improving market access for investors. “We are proud to be taking the next step to further enhance India’s market accessibility by providing investors with an additional avenue to access and hedge their exposure to the Indian market,” he said.

The announcement also adds to BSE’s broader push across asset classes. The exchange, established in 1875, is Asia’s oldest stock exchange and one of the world’s largest by number of listed companies. It offers trading in equities, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, and stock lending and borrowing.

The launch of MSCI-linked derivatives, if approved, could give domestic and global investors another route to trade or hedge exposure to India-linked benchmarks. It could also help BSE compete more strongly in the index derivatives market, where liquidity and institutional participation are key to product success.