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NSE trims lot sizes

Halves lot size for Nifty, slashes lot sizes for FinNifty & Mid-cap Nifty, while leaving no change in Bank Nifty lot at 15

NSE trims lot sizes
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Hyderabad: In pursuance of Sebi guidelines for periodic revision of lot sizes for derivatives contracts, NSE has revised lot sizes for three indices. The lot sizes for Nifty, Fin Nifty and Mid-cap Nifty have been lowered, while Bank Nifty remains at the current level, according to a circular from NSE. The trading in new lot sizes is effective with May F&O series beginning from April 26, 2024.

For the purpose of the computation of contract value, the average closing price of the underlying index has been taken for one-month period of March 2024.

Nifty lot size has been reduced to 25 from 50, Fin Nifty lot size will be 25 from the current 40 and Mid-cap Nifty lot size will be 50 from the current 75.

Market analysts welcome the move to reduce lot sizes as it’ll ease margin requirement for traders almost 50 per cent. Further, FinNifty and Mid-cap Nifty may help enhancing liquidity and lower the spreads. Traders can build positions with less margin.

NSE last week issued a circular revising market lot sizes of derivative contracts for 54 individual stocks among the 182 stocks with such contracts.

Nifty-50 index derivatives:

There is no revision in market lot of monthly expiry of April 2024 expiring on April 25, 2024, expiry. All contracts i.e. weekly, monthly, quarterly, and half yearly expires available for trading from trade date of April 26, 2024, onwards will be with the revised market lot size.

All new contracts generated from end of the day of April 25, 2024, and available for trading from April 26, 2024, onwards will be with the revised market lot size.

The first weekly expiry contract with revised lot size will expire on May 2, 2024. The first monthly expiry contract with revised lot size will expire on May 30, 2024.

Fin Nifty derivatives:

There is no revision in market lot of existing monthly expiries, expiring on April 30, 2024, May 28, 2024, and June 25, 2024.

The first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 30, 2024.

There is no revision in market lot of weekly contracts with expiry date up to July 23, 2024. All weekly contracts with maturities from August 2024 onwards (i.e. weekly contract with expiry date of August 6, 2024 onwards) will have revised market lots.

The day spread order book will not be available for the combination contract of May 2024 July 2024 and June 2024 July 2024 expiries.

Mid-cap Nifty derivatives:

There is no revision in market lot of existing monthly expiries, expiring on April 29, 2024, May 27, 2024, and June 24, 2024.

The first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 29, 2024

There is no revision in market lot of weekly contracts with expiry date up to July 22, 2024. All Weekly Contracts with maturities from August 2024 onwards (i.e. weekly contract with expiry date of August 5, 2024 onwards) will have revised market lots.

The day spread order book will not be available for the combination contract of May 2024 July 2024 and June 2024 July 2024 expiries. This circular shall come into effect from April 26, 2024.

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