NSE revises quantity freeze limits for index derivatives from September 1

NSE revises quantity freeze limits for index derivatives from September 1

The National Stock Exchange (NSE) has revised the quantity freeze limits for index derivatives contracts, effective from September 1, 2025. The changes were notified through a circular issued on August 29.

As per the revised framework, the applicable freeze limits for key indices will be: Bank Nifty at 900, Nifty 50 at 1,800, Finnifty at 1,800, Nifty Midcap Select at 2,800, and Nifty Next 50 at 600.

Under the earlier circular effective July 1, the limits were lower for some indices—Bank Nifty at 600, Nifty at 1,800, Finnifty at 1,800, Midcap Nifty at 2,800, and Nifty Next 50 at 600. The latest revision effectively increases the permissible order size for Bank Nifty futures and options, while retaining the freeze limits for other contracts.

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Quantity freeze limits act as a safeguard to prevent erroneous or abnormally large orders that could disrupt market stability. By placing a ceiling on maximum order sizes in futures and options contracts, the exchange seeks to reduce the risk of “fat finger” trades and ensure smoother functioning of the derivatives market.

The NSE has advised its trading members to update their systems with the revised contract details before the effective date. Updated contract files are available for download from the exchange’s extranet server as well as its official website.

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The revised limits will apply to all trades in index derivatives from September 1.