Investors will be spoilt for choice in the Indian markets, with the Securities and Exchange Board of India on Wednesday announcing the introduction of seven new derivative products.

The step is intended to expand the domestic market and make it largely onshore and safe for investors.

The Sebi board, which met in Chennai, approved introduction of these new derivative products based on the interim recommendations made by a committee on derivatives headed by M Rammohan Rao.

M Damodaran, Sebi chairman, said, "What we are trying to do is to see India's market becomes largely onshore. One of the steps would be to add more products in the Indian market."

The new products will relate to mini-contracts on equity indices, options with longer life/tenures, volatility index and F&O (futures & options) contracts, options on futures, bond indices and F&O contracts, exchange traded currency (foreign exchange) F&Os, and exchange traded products to cater to different investor profiles.

"We have decided that we will have a wider consultations process before finalising the specifications of these products. Information about the products will be put on the Sebi website for wider consultation before introduction of these products by exchanges," Damodaran said.

"This will help us know whether the market needs it, as well as the lead time required for introducing the products."

While the introduction of derivatives products will depend on product design, risk mitigation features and conformity to regulatory requirements, Sebi expects the first of these seven products to be introduced in the next few months.

Sebi expects these products to attract more investors into India. Right now, such products are available in other markets.

"More such products will attract investor interest. The size of the market will also grow and investors will not be subject to the whims and fancies of any small group," Damodaran added.

All these initiatives were aimed at making the Indian market transparent and developed in terms of investors and products, as well as cost-competitive, Damodaran pointed out.