In compliance with the Securities and Exchange Board of India (Sebi) ‘s most recent futures and options (F&O) regulations, the National Stock Exchange of India (NSE) has increased the lot sizes for its five index derivatives contracts: Nifty, Nifty Bank, Nifty Financial Services, Nifty Midcap Select, and Nifty Next50.
Beginning on November 20, the Nifty 50’s lot size will increase thrice from 25 to 75. Bank Nifty’s lot size has doubled from 15 to 30. Nifty Midcap Select increased from 50 to 120, Nifty Financial Services from 25 to 65, and Nifty Next 50 from 10 to 25.
For the duration of the present weekly and monthly contracts, these revised lot sizes will be in place until the next expiry. Existing expiry contracts that are quarterly or half-yearly in nature will be converted to the new lot size on December 24, which is the last day for BANKNIFTY, and December 26, which is the last day for NIFTY.
The regulator has mandated that all new index derivatives contracts (weekly, monthly, quarterly, and half-yearly) have a minimum contract value of Rs 15 lakh upon introduction starting on November 20. The NSE said in a circular on that the lot sizes have been fixed so that the contract value of the derivative on the day of review is between Rs. 15 lakh and ~20 lakh.
The average closing price of the underlying index from September 16 to October 15, 2024, will serve as the basis for the updated lot sizes. Additionally, the combo contract of December 2024 – February 2025, January 2025 – February 2025, and January 2025 – March 2025 will not have access to the day spread order book.
