The National Stock Exchange (NSE) has announced a revision in the lot size for derivative contracts for 54 stocks including State Bank of India, Adani Ports, Larsen & Toubro, Ambuja Cements, among others. The lot sizes for the remaining 128 stocks have been kept unchanged.
The lot size refers to the fixed number of shares of a stock or an index for which futures and options (F&O) contracts are traded.
For instance, if the lot size is 100, then contracts in that multiple can only be traded. The lot sizes are fixed based on stock price, liquidity, and risk.
The exchange has cut the lot size for the futures and options contracts of 42 stocks to half of the current lot sizes. The revised lot sizes will be effective from 26 April for expiries in May or later.
The lot sizes for six other companies have also been revised downwards, but these cuts are in varying range and will be effective for July and later expiries. These include Tata Motors, Tata Power, Bajaj Auto, Grasim, Godrej Properties, and Power Finance Corporation (PFC).
The six scrips for which lot sizes have been increased include Bandhan Bank, Atul, Zee Entertainment, Dalmia Bharat, Navin Fluorine, and Polycab India. These revisions will also be applied for expiries July and later.
The exchange said that the changes have been done as per the guidelines of the Securities and Exchange Board of India (SEBI).
“In pursuance of SEBI guidelines for periodic revision of lot sizes for derivatives contracts specified in the SEBI circular dated 13 July 2015, the market lots of derivatives contracts shall be revised,” said NSE in a circular issued on Thursday.
SME Lots Also Revised
In its half-yearly review, the exchange has also revised downwards the lot size of 75 scrips on the SME Platform where small and medium companies are traded. These changes will be effective from 29 April. The lot sizes for 216 SME securities have been kept unchanged.
NSE has a separate platform for SMEs called NSE Emerge.
First Published: Mar 29 2024 | 5:52 PM IST