Financial Insights

SEBI approves NSE for launch of derivatives on Nifty Midcap Select Index

The market regulator SEBI has approved the National Stock Exchange of India for launch of Nifty Midcap Select Index.

Vikram Limaye, MD & CEO of NSE, said, “The current availability of index derivatives on the exchange is largely focused on either the large cap stocks or sector specific stocks. The midcap stocks account for around 17% of market capitalization. The launch of derivatives on Nifty Midcap Select index will provide participants an additional hedging tool to manage their portfolio risk effectively”.

The derivatives will be launched from 24th January, 2022. The index aims to track the performance of a portfolio of 25 stocks in the Nifty Midcap 150 Index. The exchange will offer futures and options with a trading cycle of 7 weekly expiration dates and 3 serial monthly expiration contracts.

The Nifty Midcap Select Index has given 38.73% return in the last one year and 19.4% annual return in the last five years.

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