The new contracts will be denominated in US dollars and settled in cash.
In Europe, the Sensex will be traded on the Eurex, the region's derivative leader, controlled by German operator Deutsche Brse and SIX Swiss Exchange AG.
The Bombay Stock Exchange, the oldest bourse in Asia, is looking at listing its benchmark 30-share index Sensex on the US-based International Securities Exchange that is owned by Eurex Frankfurt AG.
NSE launched trading in individual stock futures in November 2001.
Sarao was described as a fun guy, outgoing and talkative by other members of the tight knit South Asian community.
If it goes ahead, the combination would create the world's biggest exchange by revenue.
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