BSE shares in focus on Sebi nod to introduce ‘Focused Midcap Index’ futures and options contracts

Shares of BSE are likely to be in focus heading into trade on February 16 after the exchange received approval from the Securities and Exchange Board of India (Sebi) to introduce derivative contracts on the “BSE Focused Midcap Index”. The move expands BSE’s index derivatives offerings at a time when exchanges have shifted to a single weekly expiry framework.

The BSE Focused Midcap Index tracks the performance of the top 20 mid-cap companies selected on the basis of free-float market capitalisation. Unlike broader midcap gauges, the index is structured to provide concentrated exposure to leading mid-sized companies.

BSE said it will launch cash-settled monthly index futures and monthly index options on the new benchmark. The contracts will expire on the last Thursday of the expiry month, in line with the standard monthly derivatives cycle.


The development comes amid recent regulatory changes aimed at streamlining the derivatives framework. Following Sebi’s directives, exchanges are now permitted to offer only one weekly expiry per exchange in order to curb excessive speculative activity and reduce concentration risk.

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As a result, the number of weekly index options expiries in the market has declined, shifting greater emphasis towards monthly contracts and select flagship indices.

With derivatives on a focused midcap index, BSE aims to cater to traders and investors looking for targeted exposure to quality mid-sized companies, particularly at a time when broader midcap indices have experienced sharp swings.

By introducing a concentrated 20-stock midcap benchmark, BSE positions the product as a tactical instrument for hedging and directional strategies linked to midcap performance, while remaining aligned with the revised derivatives structure that emphasises monthly expiries.

BSE Q3 snapshot

BSE reported a 174% jump in its December quarter consolidated net profit at Rs 602 crore compared to Rs 220 crore reported in the year-ago period.

The company's revenue from operations stood at Rs 1,244 crore in Q3 FY26, up 62% over Rs 768 crore posted in the corresponding period of the last financial year.

The operating Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), including core SGF, stood at Rs 732 crore versus Rs 680 crore in Q2 FY25 and Rs 236 crore in the year-ago period. It was up 8% quarter-on-quarter while surging 230% year-on-year.

BSE shares are up 15% since the beginning of the year.

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