Shares of India’s top stock exchange, BSE, rose more than 3% in early trade on March 5, extending gains after the exchange received regulatory approval to launch new derivative contracts linked to a broader market index.
The stock was trading around ₹2,680 in early trade, up from the previous close of ₹2,626.90, after opening higher at ₹2,710 during the session.
In an exchange filing dated March 4, BSE said it has received approval from the Securities and Exchange Board of India (SEBI) to launch derivative contracts on the “BSE Sensex Next 30 Index.” The index tracks the next largest and most liquid companies within the BSE 100 that are part of the derivatives segment but are not constituents of the Sensex 30 index.
According to the exchange, the new derivatives will include cash-settled monthly index futures and monthly index options, with the expiry scheduled on the last Thursday of the expiry period.
Market participants said the approval could help deepen the exchange’s derivatives ecosystem by providing traders with exposure to a broader set of large-cap companies beyond the benchmark Sensex.
The stock had also shown signs of recovery in the previous session. On March 4, BSE shares rebounded from the day’s lows in line with the broader market recovery seen during the last hour of trading.
The recent rebound comes after a sharp correction in the stock. BSE shares had crossed the ₹3,000 mark earlier, before retreating to around ₹2,500 levels amid concerns related to regulatory developments, which had weighed on investor sentiment.
The latest regulatory approval for new derivative contracts is being seen as a positive development for the exchange as it continues to expand its product offerings and strengthen participation in its derivatives segment.