On April, the National Stock Exchange (NSE) announced a significant adjustment in the lot size for trading derivatives contracts linked to the Nifty 50 index, reducing it by half to 25. Additionally, the lot sizes for two other indexes were also revised as part of the NSE’s periodic review process.
The lot size for derivatives contracts associated with the Nifty Financial Services (FINNIFTY) index has been decreased from 40 to 25, while for the Nifty Midcap Select (MIDCPNIFTY) index, it has been adjusted from 75 to 50.
However, there was no modification in the lot size for contracts linked to the Nifty Bank (BANKNIFTY) index, which remains at 15.
Effective from the trade date of April 26, 2024, all Nifty contracts, including those with weekly, monthly, quarterly, and half-yearly expiries, will adhere to the revised market lot size.
For Nifty 50 derivatives, the National Stock Exchange (NSE) clarified that there would be no modification in the market lot size for the monthly expiry of April 2024, set to expire on April 25, 2024. However, all new contracts generated after the end of the day on April 25, 2024, and available for trading from April 26, 2024, onwards, will adhere to the revised market lot size.
Subsequently, the first weekly expiry contract with the revised lot size is scheduled to expire on May 2, 2024. Similarly, the first monthly expiry contract with the revised lot size is set to expire on May 30, 2024.
For Nifty Financial Services, there will be no change in the market lot of existing monthly expiries expiring on April 30, 2024, May 28, 2024, and June 25, 2024. The first monthly expiry contract with the revised market lot will be the July 2024 expiry, expiring on July 30, 2024.
Similarly, there will be no revision in the market lot of weekly contracts with expiry dates up to July 23, 2024. However, all weekly contracts with maturities from August 2024 onwards (i.e., weekly contracts with expiry dates from August 6, 2024, onwards) will have revised market lots. Additionally, the day spread order book will not be available for the combination contract of May 2024 July 2024 and June 2024 July 2024 expiries.
Regarding Nifty Midcap Select, there will be no change in the market lot of existing monthly expiries expiring on April 29, 2024, May 27, 2024, and June 24, 2024. The first monthly expiry contract with the revised market lot will be the July 2024 expiry, expiring on July 29, 2024.
Similarly, there will be no revision in the market lot of weekly contracts with expiry dates up to July 22, 2024. However, all weekly contracts with maturities from August 2024 onwards (i.e., weekly contracts with expiry dates from August 5, 2024, onwards) will have revised market lots. Additionally, the day spread order book will not be available for the combination contract of May 2024 July 2024 and June 2024 July 2024 expiries.
Last week, the NSE revised lot sizes for some large-cap and mid-cap stocks in its periodic review.
Sources: moneycontrol.com