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, in accordance with the Securities and Exchange Board of India’s (Sebi’s) latest futures and options (F&O) regulations.
The lot size for Nifty 50 will see a 3x jump from 25 to 75, effective November 20. Meanwhile, the lot size for Bank Nifty has increased 2x from 15 to 30. Nifty Financial Services hiked from 25 to 65, Nifty Midcap Select from 50 to 120, and Nifty Next 50 from 10 to 25.
These new lot sizes will remain in effect for the current weekly and monthly contracts until the next expiry. In the case of quarterly and half-yearly existing expiry contracts, the same shall be transitioned to the new lot size on December 24, the end of the day for BANKNIFTY and December 26, the end of the day for NIFTY.
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From November 20, all new index derivatives contracts (including weekly, monthly, quarterly and half-yearly), will have a minimum contract value of Rs 15 lakh upon introduction as per the regulator. NSE has fixed the lot sizes in such a manner that the contract value of the derivative on the day of review is within Rs 15 lakh to `20 lakh, the exchange said in a circular on Friday.
The revised lot sizes will be based on the average closing price of the underlying index from September 16th to October 15th, 2024. Further, the day spread order book will not be available for the combination contract of December 2024 – February 2025, January 2025 February 2025 and January 2025 March 2025.
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