Change in Lot Size for Nifty, Bank Nifty and NSE Securities

By September 23, 2015 Trading 2 Comments
Change in Lot Size for Nifty, Bank Nifty and NSE Securities

Recently NSE released a circular stating a change in the lot sizes. Kindly go through the following email to keep yourself updated with the changes and the steps to be taken.

There is a change in Nifty lot size & NSE securities in connection to online trading

What was the official communication?

The lot size of NIFTY, BANK NIFTY and some Futures stocks will be revised as per the NSE Circulars dated August 07, 2015 and August 14, 2015. These circulars include an Index Lot Size Change Circular that talks about the old and revised lot sizes for indices and a Stocks Lot Size Change Circular which gives a comprehensive list of all stocks whose lot sizes have changed.

What must I keep in mind?

  1. The spread order book will not be available for the combination contract of September 2015 – November 2015 and October 2015 – November 2015 expires.
  2. All open contracts of Nifty options would be retained as a multiple of 75 quantities with effect from September 28, 2015 (December expiry onwards). So if the total quantities of your open positions are not a multiple of 75, we advise that you square off all the residual quantities on or before the 24th of Sep, 2015 trading session ends. Eg. If you have bought 4 lots of NIFTY January 2016 expiry (50 x 4 = 200 quantity) your new position will be of 2 lots of 75 quantity and a residual of 50 quantities(75 x 2 = 150; 150 + 50 = 200). We advise that you square off these 50 quantities on or before the 24th of Sept. 2015.

In case any position remains open with a lot size of less than 75 (December expiry onwards) then the trading system will not allow you to square this position off till the expiry. This is because contracts with a lot size of less than 75 will not be available in the market. It will be squared off by the exchange on the respective expiry date.

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What exactly has changed?

The lot size for several stocks and indices has changed. This email contains only the most critical updates.

For Nifty Future contracts

Nifty future contracts with a maturity of September 2015 and October 2015 will continue to have the existing lot size of 25 quantities and contacts with a maturity in November 2015 onwards will have a lot size of 75 quantities.

For Nifty Options Contracts

The lot size of all subsequent contracts (having expiry greater than 3 months and including December 2015 contracts) shall be revised from 50 to 75 after the expiry of September 2015 contracts (i.e. w.e.f. September 28, 2015).

I am confused, can you give me an example?

Sure! Here is an example!
If you have an open position of 100 quantities in Nifty option December expiry, even after September 24, 2015, you will only be able to square off 75 quantities. The remaining 25 Qty will remain open and you will not be able to place the square off order for the same. It will be squared off by the exchange on the last day of December expiry. (Same will be applicable for contracts having expiry greater than 3 months).

We hope this email has helped you understand the changes properly. If not so please feel free to leave your concerns in the comments below and we will make sure we get back to you with the best possible solution.

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