BSE has launched a new index that tracks the top 20 mid-cap companies selected by free-float market capitalisation. This index offers focused exposure to leading mid-sized firms, unlike broader midcap indices. The exchange will start cash-settled monthly index futures and options contracts on this new benchmark. These contracts will expire on the last Thursday of each expiry month, following the standard monthly derivatives cycle. This move comes after Sebi’s new rules which allow only one weekly expiry per exchange to limit speculative trading and concentration risk. With fewer weekly expiries, the market focus is shifting to monthly contracts and key flagship indices. By launching derivatives on this concentrated midcap index, BSE aims to attract traders and investors looking for targeted exposure to quality mid-sized companies. The new index is seen as a smart tool for hedging and directional trading linked to midcap stocks. It also fits within the revised derivatives framework that emphasizes monthly expiries. This focused product offers a tactical way to navigate midcap market swings in India.