The Bombay Stock Exchange (BSE) announced on August 19, 2026, that it has entered into an agreement with MSCI to explore the launch of derivatives linked to MSCI indices in India. Following the announcement, BSE’s share price initially rose more than 2% in early trade on August 20 but later slipped 1.57% during the intraday session, reflecting mixed investor sentiment, according to livemint.com.
The agreement between BSE and MSCI covers several MSCI indices, enabling BSE to consider introducing derivatives products based on these benchmarks. This move comes amid volatile market conditions, with BSE shares experiencing a 5.84% decline over the past week and a 9.58% drop in the last month. The exchange’s decision to explore MSCI-linked derivatives aims to diversify its product offerings and attract more trading activity, as reported by thehindubusinessline.com.
Launching derivatives linked to MSCI indices would position BSE alongside other global exchanges that offer such products, providing Indian investors access to international benchmark-linked instruments. MSCI indices are widely used by institutional investors for portfolio benchmarking and risk management. The introduction of these derivatives could enhance market depth and liquidity, aligning with broader trends in India’s derivatives market expansion, according to livemint.com.
BSE’s next steps include regulatory approvals and product development before officially launching MSCI-linked derivatives. The exchange’s announcement on August 19 marks a key milestone in its efforts to broaden derivative offerings, with further updates expected as the initiative progresses, thehindubusinessline.com reported.