NSE Reduces Lot Sizes in Nifty and Bank Nifty Derivatives

Written by: Team Angel OneUpdated on: 6 Oct 2025, 7:53 pm IST

NSE trims lot sizes for Nifty to 65 and Nifty Bank to 30, reducing margin costs and improving affordability for derivative traders.

The National Stock Exchange (NSE) has revised the lot sizes for its major derivative indices, including Nifty and Nifty Bank. This change, effective from December 30, 2025, aims to lower contract values and margins. This circular shall come into effect from October 28, 2025 (EOD).

NSE Lowers Lot Sizes for Index Derivatives

NSE has announced a reduction in market lot sizes for derivative contracts on four major indices. The Nifty 50 lot size will be reduced from 75 to 65, bringing the contract value closer to ₹16,12,126 (assuming Nifty at 24,800), down from approximately ₹18,60,000. This will lower the margin requirement from around ₹2,04,000 to ₹1,77,000, making these trades more accessible.

Changes in Nifty Bank, Financial Services and Midcap Select

For monthly contracts, Nifty Bank’s lot size will decrease from 35 to 30, and Nifty Financial Services from 65 to 60. Nifty Midcap Select will undergo a cut from 140 to 120. These changes are designed to keep contract values within the minimum standard of ₹15,00,000 set by SEBI, ensuring consistency across the system.

Effective Dates and Transitional Guidelines

The reduced lot sizes will apply starting from the monthly expiry dated December 30, 2025. Till that date, existing lot sizes will remain effective. Traders are advised to monitor weekly and monthly contract expiries during this transition phase to avoid any confusion regarding applicable lot sizes.

Conclusion

The NSE’s reduction of derivative lot sizes in Nifty and related indices aligns with SEBI guidelines and market needs. Lowering entry barriers for traders is likely to reinvigorate activity in the derivatives segment and support market depth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 6, 2025, 9:45 AM IST

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