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NSE Revises Lot Sizes For Index Derivatives Contracts, Effective From Nov 20

This revision is in accordance with a SEBI circular that mandates derivatives contracts to have a minimum value of Rs 15 lakh per lot.

<div class="paragraphs"><p>The National Stock Exchange has revised the lot sizes for index derivatives contracts.</p><p>NSE (Source: Vishal Patel/NDTV Profit) </p></div>
The National Stock Exchange has revised the lot sizes for index derivatives contracts.

NSE (Source: Vishal Patel/NDTV Profit)

The National Stock Exchange has revised the lot sizes for index derivatives contracts. The lot size for the Nifty 50 derivatives contract has increased from 25 to 75, according to a circular shared by the NSE.

Similarly, the lot size for the Nifty Bank derivatives contract has been revised from 15 to 30, the circular dated Oct. 18 stated.

The lot size of the Nifty Financial Services derivatives contract has been revised from 25 to 56 and that of the Nifty Next 50 has been increased from 10 to 25.

These new lot sizes will take effect from Nov. 20. This revision is in accordance with a circular by the Securities and Exchange Board of India that mandates derivatives contracts to have a minimum value of Rs 15 lakh per lot.

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In September, the NSE deferred until further notice the implementation of T+0 rolling settlement cycle in India's capital market segment that was supposed to go live on Sept. 30.

The weekly index derivatives contracts for the Bank Nifty, Nifty Midcap Select, and the Nifty Financial Services will be discontinued from Nov. 13, Nov. 18, and Nov. 19 respectively. This decision falls in line with the new framework introduced by SEBI earlier this month. As a result, the NSE will only offer one tradable index: the Nifty 50.

On Oct. 4, SEBI announced that the NSE resolved a case related to alleged violations in trading access point architecture by paying a settlement of Rs 643 crore. The payment was made by the NSE on behalf of itself and other settlement applicants, including its former chief executive officer, Vikram Limaye, on Sept. 25, according to SEBI.

SEBI is also pushing the BSE and NSE to tighten their due diligence on merchant bankers involved in SME initial public offerings because the market regulator observed weak enforcement in clearing some SME IPOs and raised concerns about unrealistic claims made by certain companies.

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