National Stock Exchange (NSE) on October 18 revised lot size of five futures and options (F&O) segments effective November 20.
In a circular, NSE said lot size of Nifty has been revised to 75 from 25, Bank Nifty's lot size has been increased to 30 from 15. Fin Nifty's lot size has been revised to 65 from 25, while that of Midcap Nifty has been increased to 120 from 50. Nifty Next 50's lot size has been increased to 25 from 10, said NSE.
The measure shall be effective for all new index derivatives contracts (includes weekly, monthly, quarterly and half-yearly) introduced from November 20, 2024, onwards, said NSE.
An index derivative contract shall have a value not less than Rs 15 lakh at the time of its introduction in the market. Further, the lot size shall be fixed in such a manner that the contract value of the derivative on the day of review is within Rs 15 lakh to Rs 20 lakh, said the stock exchange.
"The existing weekly and monthly expiry contracts will continue with the existing lot size till its respective expiry date. In case of quarterly and half yearly existing expiry contracts, the same shall be transitioned to the new lot size on December 24, 2024, end of the day for BANKNIFTY and December 26, 2024, end of the day for NIFTY," NSE further said.
Earlier this month, NSE announced it will retain weekly derivative contracts linked to the benchmark Nifty 50 index, after Securities and Exchange Board of India's (SEBI) announced tighter rules for equity derivatives.
The move follows SEBI's order requiring exchanges to cut down the number of weekly options contracts available to investors to one from Nov. 20.
The new rules were put in place to curb a recent spurt in options trading by retail investors that the regulator and the government view as a risk to household finances.
NSE said it will discontinue its other three weekly options linked to Bank Nifty, Nifty Financial Services and Nifty Mid-Cap.
BSE also said it will discontinue weekly derivative contracts linked to Bankex, and Sensex 50, retaining only contracts linked with its benchmark BSE Sensex, an index of 30 bluechip stocks.
A SEBI study showed that individual traders made net losses totalling Rs 1.81 lakh crore in futures and options in the three years to March 2024, with only 7.2% making a profit.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
