FTSE Group, the global index provider, and the National Stock Exchange of India (NSE) have announced a new partnership resulting in the licensing of futures and options based on the FTSE 100 Index.

The licensing will see the exchange launching the new product on May 3 following recent regulatory approval granted by the Indian regulator.

For the first time, Indian investors will gain access to the UK equity market through new rupee-denominated derivative contracts based on one of FTSE's headline indices.

The new contracts will be tradable by all equity derivatives members of the NSE through existing infrastructure, with no additional investment required.

The introduction of derivatives products based on the FTSE 100 Index will enable Indian investors to hedge and gain exposure to the top 100 constituents listed on the main market of London Stock Exchange.

The move spearheaded by London Stock Exchange Group, FTSE and NSE, signifies FTSE's global reach and the NSE's commitment to further develop the Indian securities market, in which it plays an influential role.

"The FTSE 100 Index will help Indian investors to diversify their portfolios further and have access to one of the world's widely tracked equity indices, whilst minimising currency risk,'' said NSE chief executive Ravi Narain.

"We are committed to serving the global investment community including key markets such as India, where we are committed to providing Indian investors with robust and reliable investment tools for a range of investment opportunities covering Indian and global markets," said FTSE India managing director Rohtas Handa.