Nifty Sectorial Indices – F&O New Lot size to be revised w.e.f. April 26, 2024

The National Stock Exchange of India has recently announced a reduction in the market lot sizes for derivative contracts of key indices such as Nifty 50, Nifty Financial Services, and Nifty Midcap Select. Effective from April 26, this adjustment is a routine part of the exchange’s periodic review of lot sizes for derivative contracts, conducted according to the guidelines set by the Securities and Exchange Board of India (SEBI).

Lot Size Revision of Nifty 50, Nifty Financial Services & Midcap Select

Specifically, the market lot for the Nifty 50 derivative contract will be halved, decreasing from 50 to 25, as outlined in a circular released by the exchange. The Nifty Financial Services derivative contract lot size will decrease to 25 from 40, whereas the Nifty Midcap Select will see changes in derivative contracts, decreasing to 50 from 75.

The following table shows the revision of the market lot:

Bank Nifty Lot Size Unchanged

The market lot for the Nifty Bank index remains unchanged at 15.

Mark Your Calendar

Starting from April 26, 2024, significant changes are set to take effect in the trading of Nifty 50 index derivatives and other related instruments. Firstly, for the monthly expiry of April 2024, which concludes on April 25, 2024, there will be no alterations to the existing market lot size. However, for all contracts initiated on or after April 26, 2024, including weekly, monthly, quarterly, and half-yearly expiries, a revised market lot size will be implemented. This adjustment aims to enhance consistency and efficiency in trading operations.

In the realm of Nifty Financial Services index derivatives, continuity will prevail for existing monthly expiries until June 2024, with no changes in the market lot size. However, commencing from the July 2024 expiry onwards, the market lot size will undergo revision. Weekly contracts with expiration dates up to July 23, 2024, will remain unaffected, while those expiring from August 6, 2024, onwards will witness revised market lots. Additionally, certain combinations of contracts, such as those spanning May 2024 to July 2024 and June 2024 to July 2024 expiries, will be ineligible for the day spread order book.

Likewise, in the domain of Nifty Midcap Select index derivatives, existing monthly expiries will retain their market lot size consistency until June 2024. Subsequently, beginning with the July 2024 expiry, a revised market lot size will be instituted. Similarly, weekly contracts with expiry dates up to July 22, 2024, will not undergo any changes, whereas those expiring from August 5, 2024, onwards will observe revised market lots.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.