Mumbai, October 5 (IANS). The National Stock Exchange (NSE) has announced the reduction of lot size of derivatives of four main index including Nifty 50 and will be applicable from October 28.
According to the official statement, the lot size of the Derivative of the Nifty 50 index has been reduced from 75 to 65, while the Lot size of the Nifty Bank has been reduced from 35 to 30.
The latch size of derivatives of Nifty Financial Services has been reduced from 65 to 60. The latch size of the derivatives of the Nifty Mid Selection Index has been reduced from 140 to 120. However, there has been no change in the lot size of derivatives of the Nifty Next 50 index.
The exchange said that investors may continue to trade with the current lot size by the expiry of December 30, 2025, after which all new contracts of any maturity will follow the small lot size.
NSE said in a statement, “Members are advised to inform their customers who have a position in quarter and half -yearly contracts or whoever takes new positions, inform about the upcoming amendment in lot size on the scheduled dates.”
The weekly and monthly contracts of the current lot size Nifty will end on December 23, while the monthly Nifty and the bank Nifty contracts will end on 30 December. After these dates, all new contracts will come up with modified lot size.
The amendment in lot size of NSE Future and Options is mainly made to keep the contract value within a standard range and maintain economical.
Traders do not have to pay the entire value of the contract in advance, as derivatives are leveraged equipment, but their lot size determines the risk and required margin of participants.
The revision of lot size by stock exchanges is done to ensure that the contract markets are more attractive to a large number of participants.
-IANS
ABS/