Exchanges - Reduction In Index Derivative Contract Size Augurs Well For Retail Participation: ICICI Securities

SEBI regulation regarding index options contract size necessitates periodic revision downwards with increase in index value

A finance professional discussing with a client through mobile phone while trading stocks. (Source: Antonio Diaz/Freepik)

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ICICI Securities Report

We believe miniaturisation of contracts may help in spurting retail participation. This may further gain prominence post the reduction of market lots in derivative contracts by the NSE as announced on Apr 2, 2024.

This, in our view, could lead to an increase in the number of orders, and hence, be construed positive for brokerage plays.

However, premium/notional value may not change much ideally as seen in the case of Bank Nifty lot size reduction in June 2023.

Click on the attachment to read the full report:

ICICI Securities Exchanges Update NSE lot size.pdf
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Also Read: Cement Q4 Results Preview - An Unusual ‘Busy Season’: ICICI Securities

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