NSE on 18th Oct 2024 announced some bad news for the traders that is really going to shake a lot of them. They’re changing the contractual value units for index derivatives. Well, this is not such a random shift. It is actually in line with a much broader scheme that SEBI put in action with their circular from October 1, 2024. The whole idea is to try and reduce the risk and make investing a little less risky and therefore adding more structure to the markets.
Here’s what is going down. With passing of new rules empowered by SEBI,now,any index derivative contract ‘s price should be Rs. 15 lakhs at least when it will be listed. And the lot sizes? They have to be set that the value of the contract should be lying between Rs. 15 lakhs and Rs. 20 lakhs during the review.
Now, how to explain this new lot sizes that NSE is using today, did it invent them out of the blue? They looked at the end-of-day value of each index from September 16, 2024, to October 15, 2024. Based on those numbers, here’s what the revised lot sizes are going to look like for some of the big names:
| Index | Symbol | Existing Lot Size | Revised Lot Size |
|---|---|---|---|
| Nifty 50 | NIFTY | 25 | 75 |
| Nifty Bank | BANKNIFTY | 15 | 30 |
| Nifty Financial Services | FINNIFTY | 25 | 65 |
| Nifty Midcap Select | MIDCPNIFTY | 50 | 120 |
| Nifty Next 50 | NIFTYNXT50 | 10 | 25 |
