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BSE Launches All Derivative Stocks Index for Passive Investment Strategies

BSE Index Services has launched the BSE All Derivative Stocks Index to track the performance of derivative-eligible constituents within the BSE 500. The index is designed to support passive investment vehicles like ETFs and serve as a benchmark for portfolio strategies. It uses a weighting methodology based on float-adjusted market capitalization and momentum, with a 10% cap per stock. This launch follows BSE's recent partnership with India Post to distribute mutual funds through its postal network.

Key Points: BSE Launches New All Derivative Stocks Index

  • Tracks BSE 500 derivative stocks
  • Enables ETFs & index funds
  • Weighted by market cap & momentum
  • Reconstituted semi-annually
  • Part of BSE's index expansion
2 min read

BSE Index Services launches BSE All Derivative Stocks Index to help run passive strategies

BSE Index Services launches a new index to track derivative-eligible stocks, enabling ETFs and passive investment strategies.

"It provides market participants with a transparent, rules-based benchmark that evolves alongside the derivatives ecosystem - Ashutosh Singh"

Mumbai, Jan 9

BSE Index Services Pvt. Ltd, a wholly-owned subsidiary of Bombay Stock Exchange, on Friday announced the launch of a new index -- BSE All Derivative Stocks Index. The BSE All Derivative Stocks Index aims to track the performance of the constituents of BSE 500 Index which are linked to derivative trading.

This new index can be used for running passive strategies such as exchange traded funds (ETFs) and index funds. It can also be used for benchmarking PMS strategies, MF schemes and fund portfolio.

The index marks a structural change in the way market benchmarks are constructed in India, said Ashutosh Singh, MD and CEO of BSE Index Services Pvt. Ltd.

The index dynamically represents the entire derivative-eligible equity universe and thus mirrors the changing depth, liquidity, and maturity of India's capital markets.

"It provides market participants with a transparent, rules-based benchmark that evolves alongside the derivatives ecosystem by automatically expanding and contracting with the eligible universe," Singh added.

The BSE All Derivative Stocks Index constituents are weighted by the product of float-adjusted market capitalization and momentum score, subject to an individual stock weight cap of 10 per cent. The base value is 1,000, first value date is June, 23, 2014, and it is reconstituted semi-annually in June and December.

Investors can now access a broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE's suite of indices, the statement said.

BSE had, in December 2025, signed a memorandum of understanding (MoU) with the Department of Posts to enable distribution of mutual fund products through India Post's extensive postal network.

Under the three‑year agreement, selected employees and agents of the Department of Posts will be trained and onboarded as certified mutual fund distributors to offer products and investor services via BSE's StAR Mutual Fund platform.

- IANS

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Reader Comments

P
Priya S
Finally! A benchmark that actually reflects the active derivative market. This should lead to better ETFs. Hope the expense ratios are kept low so the common investor benefits.
R
Rohit P
The tie-up with India Post is the real game-changer here. If mutual funds reach every village through the post office, it will be a financial revolution. This index is just the technical backbone for that.
S
Sarah B
Interesting development. The weighting by momentum score is a key detail – it's not just market cap. This could make index funds tracking it slightly more active in nature. Needs careful study.
V
Vikram M
As a fund manager, this is a useful tool for benchmarking. But I have a respectful criticism: the semi-annual reconstitution might be too slow for a derivative universe, which can change quickly. Quarterly might be better.
K
Kavya N
More indices, more options for SIPs! Hope AMCs launch funds on this soon. Our capital markets are getting world-class. 🇮🇳

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