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Key Points

The National Stock Exchange is making index derivatives more accessible by reducing lot sizes. Nifty 50 contracts will now require 65 units instead of 75, while Bank Nifty drops from 35 to 30. Existing positions can continue with current sizes until their December 2025 expiry. This move aims to maintain standardized contract values and attract more participants to derivatives trading.

Key Points: NSE Cuts Nifty 50 and Bank Nifty Lot Sizes From October 28

  • Nifty 50 lot size reduced from 75 to 65 effective from October 28
  • Bank Nifty lot size cut from 35 to 30 to enhance affordability
  • Current lot sizes remain valid until December 30, 2025 expiry
  • NSE aims to keep contract values standardized and boost market liquidity
2 min read

NSE reduces lot sizes for Nifty 50, other index derivatives from Oct 28

NSE reduces Nifty 50 lot size from 75 to 65 and Bank Nifty from 35 to 30, making derivatives trading more affordable for investors starting Oct 28.

"Members are advised to inform their clients who have positions or take any new positions in the quarterly and half-yearly contracts of the upcoming revision in lot size on the below-mentioned dates, - NSE"

Mumbai, Oct 5

The National Stock Exchange (NSE) has announced that it will revise market lot sizes for four major index futures and options contracts, including Nifty 50, effective from October 28.

The lot size for the Nifty 50 index has been reduced from 75 to 65, and the Nifty Bank lot size has been cut from 35 to 30, according to an official statement.

The Nifty Financial Services lot size is now 60, down from 65, while the Nifty Mid Select index has been reduced from 140 to 120. The market lot of derivative contracts for the Nifty Next 50 Index was kept unchanged.

Investors can continue to trade with current lot sizes until the December 30, 2025 expiry, after which all new contracts of any maturity will follow the revised, smaller lot sizes.

"Members are advised to inform their clients who have positions or take any new positions in the quarterly and half-yearly contracts of the upcoming revision in lot size on the below-mentioned dates," NSE said.

The current lot size for Nifty’s weekly and monthly contracts will expire on December 23, while the monthly Nifty and Bank Nifty contracts will expire on December 30. All new contracts after these dates will adhere to the revised sizes.

The NSE revises lot sizes of futures & options contracts primarily to keep the contract value within a standard range and to keep the contracts affordable and standardised.

Traders do not have to pay the full value of the contract upfront, as derivatives are leveraged instruments, but their lot size determines the participants' exposure and the margin required.

Lot size revisions are undertaken by stock exchanges to enhance market efficiency and liquidity, as well as to ensure that contracts are more appealing to a broader range of market participants.

- IANS

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Reader Comments

P
Priya S
As a small investor, this reduction in lot sizes is a welcome move. Now I can diversify my portfolio better without committing too much capital. Hope other indices follow suit soon.
S
Sarah B
While this is good for retail participation, I hope NSE also focuses on improving the educational resources for new traders. Many people jump into F&O without proper knowledge.
A
Arjun K
The transition period until Dec 2025 is well planned. Gives enough time for existing positions to adjust. Smart move by NSE to boost market liquidity and participation.
M
Michael C
Interesting that Nifty Next 50 remains unchanged. Probably because it already has reasonable lot size. Overall, this should increase trading volumes across major indices.
K
Kavya N
This will definitely help middle-class investors like us who want to participate in derivatives but found the capital requirement too high. Thank you NSE! 🙏

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