The measure shall be effective for all new index derivatives contracts (including weekly, monthly, quarterly and half-yearly) introduced from November 20, 2024, onwards, NSE said in a circular.
Nifty50’s lot size has been increased from 25 contracts to 75, a 3x jump. Nifty Bank lot size has been doubled to 30 from 15 at present.
Nifty Financial Services, also known as Fin Nifty, will see the lot size going up from 25 to 65. Nifty Midcap Select’s lot size increases from 50 to 120.
Nifty Next 50 lot size will increase from 10 to 25.”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 Bank Nifty and December 26, 2024, end of the day for Nifty,” NSE said.Earlier this month, Sebi had announced a 6-step framework to deal with the problem of households losing money in the high risk-high-reward game of F&O.Under the rules, which will come into effect in a graded manner beginning from November 20, Sebi has increased the minimum contract size for index futures and options from Rs 5-10 lakh currently to 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, the regulator said.
“Given the inherent leverage and higher risk in derivatives, this recalibration in minimum contract size, in tune with the growth of the market, would ensure that an inbuilt suitability and appropriateness criteria for participants is maintained as intended,” Sebi had said.
