As per the circular dated 2nd April 2024, The National Stock Exchange of India has announced a revision in the market lot sizes for index derivative contracts. This modification is aligned with the SEBI guidelines aimed at ensuring the standardization of derivative contracts across the market. The adjustments in market lot sizes are set to take effect from April 26, 2024, impacting all contracts expiring post this date. To facilitate a smooth transition for our stakeholders, we provide a detailed summary of these changes below:

Revised Market Lot Sizes for Index Derivatives:

Key Notes:

1. BANKNIFTY derivatives maintain their current market lot size, with no adjustments anticipated.
2. The transition to the revised lot sizes encompasses all contract types, including weekly, monthly, quarterly, and half-yearly expiries, effective from the specified start date.
3. The adjustments will first affect the NIFTY derivatives. The initial change will apply to weekly contracts expiring on May 2, 2024, followed by monthly contracts expiring on May 30, 2024.
4. For FINNIFTY and MIDCPNIFTY derivatives, the market lot size will not be revised for existing monthly expiries up to June 2024. The adjustments begin with the July 2024 expiry.
5. It is essential for clients holding positions in MIDCPNIFTY and FINNIFTY to ensure their holdings align with the revised lot sizes, adjusting in multiples thereof, for compliance and strategy integrity.

• For FINNIFTY: If you are currently holding 40 FINNIFTY quantities, under the revised lot size, you should adjust your position to 25 quantities or in multiples of the revised lot size, such as 50, 75, 100, etc. To effectively carry forward the existing open position beyond 26th April 2024, a client must hold at least 200 quantities or 5 lots.
• For MIDCPNIFTY: If you have a position of 75 MIDCPNIFTY contracts, you will need to revise this to align with the new lot size of 50. Your adjusted position should be 50 quantities or a multiple thereof (e.g., 100, 150, etc.). In this case, a client must hold at least 150 quantities or 2 lots.

To know the revised lot sizes of stock derivatives contracts, kindly refer to this document.

For more details, kindly refer to these circulars - Index Derivatives / Stock Derivatives.