As per the circular dated 31st March 2023, The National Stock Exchange of India has announced that the Nifty Bank lot size will be changed to 15 qty except for July weekly series (6-Jul, 13-Jul, 20-Jul).with effect from 30th June 2023. The lot size of Nifty Bank futures and options contracts is revised periodically by NSE to reflect the changes in the underlying index value. The reduction in lot size from 25 qty to 15 qty aims to make the contracts more affordable and accessible for retail investors. The impacted options contracts are as below:

The following points will be applicable for the above open Nifty Bank positions:

1. Clients having open positions in Nifty Bank options (except July series) must be in the multiples of 15 qty.
2. The positions of the clients who fail to meet the requirement mentioned in 1st point will be squared off by our Risk team anytime on 28th June 2023.
3. Clients having open positions in the multiple of 15 qty will be unaffected.

For instance, let’s say you have an open position of 2 lots (50 qty) in Nifty Bank options, 3rd August expiry, and wish to carry forward the position till 30th June. However, it is not possible to carry forward your open position to 30th June as the quantities must be in the multiples of 15. So, you’ll have to decide from the following options as of 28th June 2023:

• Buy 1 lot of Nifty Bank, making it 75 qty which is a multiple of 15. On 30th June, your position will show 5 lots (75/15) instead of 3 lots.
• Close your position on or before 28th June 2023 and take a fresh position with the revised lot size on 30th June.

If you fail to act upon the above, our Risk team will square off all the open Nifty Bank positions on 28th June (before the market closes).

Note: The change in lot size will affect the margin requirements, profitability, and risk management of the traders who trade in Nifty Bank derivatives. Traders should be aware of the new lot size and adjust their positions accordingly before the deadline.