Stock exchanges eye index derivatives with new stock additions in limbo

Market players await new policy around F&O stock inclusion

This report has been updated

Stock exchanges are expanding the buffet of index derivatives even as the number of stocks permitted to trade in this space, generating an average daily turnover of Rs 450 trillion, is shrinking.

This week, the National Stock Exchange (NSE) started issuing futures and options (F&O) contracts based on the Nifty Next 50 Index, bringing the total count of index derivatives to five. The exchange, which generates one of the highest F&O volumes globally, already offers trading in derivatives based on the Nifty 50, Nifty Bank, Nifty Financial Services, and Nifty Select Midcap indices. Meanwhile,