1 week ago
BSE Explores Launch of MSCI-Linked Derivatives in India
BSE is considering offering new investment contracts based on MSCI stock-market indexes.
These contracts would be futures and options.
Investors could use them to gain exposure to Indian stocks or protect themselves from price changes.
MSCI indexes are followed by investors around the world.
They represented more than USD 21 trillion in assets under management at the end of 2025.
BSE says the plan could make India’s markets easier for investors to access.
The announcement came as BSE reported strong financial results for the April-June 2026 quarter.
Its profit and operating revenue both increased substantially from the previous year.
However, BSE’s share price was volatile after the announcement.
BSE has agreed with MSCI to explore futures and options contracts linked to MSCI indices in India.
The proposed products could help investors manage fund flows and hedge or adjust their exposure to Indian equities.
MSCI indices supported more than USD 21 trillion in assets under management as of December 31, 2025.
BSE reported a 62% year-on-year rise in consolidated shareholder profit to ₹874 crore for the quarter ended June 2026.
BSE shares initially rose more than 2% on Thursday, 20 August, before falling 1.57% during intraday trading.
- Who
- BSE and MSCI, with BSE Managing Director and Chief Executive Officer Sundararaman Ramamurth commenting on the plan.
- What
- BSE entered an agreement with MSCI and plans to explore futures and options contracts linked to MSCI indices.
- Where
- India’s capital markets.
- When
- The agreement was announced on Wednesday; BSE shares reacted on Thursday, 20 August. The financial results covered the quarter ended June 2026.
- Why
- To provide investors with another way to access and hedge exposure to the Indian market, while responding to demand for index-linked derivatives.
Key facts
- Proposed products
- Futures and options linked to MSCI indices
- MSCI assets benchmarked
- More than USD 21 trillion as of December 31, 2025
- Q1 FY2026 profit
- ₹874 crore, up 62% year on year from ₹539 crore
- Q1 FY2026 operating revenue
- ₹1,566 crore, up 63% year on year from ₹958 crore
- Q1 FY2026 total expenses
- ₹537 crore, up 49% year on year from ₹359 crore
- Share-price reaction
- BSE shares rose more than 2% early on Thursday before falling 1.57% intraday
- Long-term share performance
- The stock gained 25% year to date, 30% in one year, 1,045% in three years and 2,573% in five years
Quotes
Sundararaman Ramamurth
MD and CEO of BSE
“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”
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