NSE To Revise Lot Sizes For Key Index Derivatives From 28 October

The National Stock Exchange (NSE) has announced changes to the market lot sizes for four major index futures and options contracts, including Nifty 50, with effect from 28 October.

The lot size for the Nifty 50 index will drop from 75 to 65, while that for Nifty Bank will fall from 35 to 30, the exchange said.

The lot size for Nifty Financial Services contracts will drop from 65 to 60, while that for Nifty Mid Select will fall from 140 to 120.

Meanwhile, the lot size for Nifty Next 50 derivatives will remain unchanged.

Traders will be able to continue using the existing lot sizes until the expiry on 30 December 2025.

Thereafter, all new contracts, regardless of their maturity, will follow the revised lot sizes.

The NSE, in its statement, stated, “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.”

The present lot sizes for Nifty’s weekly and monthly contracts will remain in effect until their expiry on 23 December, while monthly Nifty and Bank Nifty contracts will expire on 30 December.

New contracts introduced after these dates will use the updated lot sizes.

The NSE periodically adjusts lot sizes for futures and options contracts to keep contract values within a standard range, ensuring that they remain both affordable and uniform.

Derivatives allow traders to use leverage, so they pay only a fraction of the contract value upfront.

However, the lot size determines both the exposure and margin requirements for participants.

Stock exchanges carry out such revisions to boost market efficiency and liquidity, and to make contracts more accessible to a wider pool of investors.