NSE Halves Market Lot Size Of Derivatives Contracts For Nifty 50

The National Stock Exchange has reduced the market lot size of derivative contracts on select indices, including the benchmark Nifty 50.

The market lot has been reduced from 50 to 25 for Nifty 50, Nifty Financial Services has been pared down to 25 from 40, and Nifty Midcap Select has been reduced to 50 from 75, according to a circular on Tuesday. The market lot of Nifty Bank remains unchanged at 15.

The changes are part of a periodic review of lot sizes in derivatives contracts, and will come into effect from April 26.

Market lots represent the number of units of a financial instrument that have been bought on an exchange.

For Nifty 50 index derivatives, all contracts i.e. weekly, monthly, quarterly and half-yearly expires, available for trading from trade date of April 26 onwards will be with the revised market lot size.

All new contracts generated from end of the day of April 25 and available for trading from April 26 onwards will be with the revised market lot size.

There is no revision in market lot of Nifty 50 monthly contracts expiring on April 25, the bourse said.

For Nifty Financial Services, the first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 30.

For Nifty Midcap Services, the first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 29.

Likewise, there will be no revision in market lot of existing monthly expiries, happening on April 30, May 28, and June 25 for Nifty Financial Services; and contracts expiring on April 29, May 27, and June 24 for Nifty Midcap Select, respectively.

The exchange last week revised lot sizes for select large and mid-cap stocks as part of its periodic review.

According to Securities and Exchange Board of India rules, lot size for derivatives contracts shall be fixed within Rs 5-10 lakh. The exchanges need to review the lot size once every six months based on the needed adjustments.