The lot size for derivative contracts for 54 equities, including State Bank of India, Adani Ports, Larsen & Toubro, and Ambuja Cements, has been revised, according to an announcement made by the National Stock Exchange (NSE). For the remaining 128 stocks, the lot sizes have remained the same.
The predetermined number of shares of an index or stock for which futures and options (F&O) contracts are exchanged is referred to as the lot size. Contracts in that multiple, for example, may only be exchanged if the lot size is 100. Based on risk, liquidity, and stock price, the lot sizes are established.
For the 42 stock futures and options contracts, the exchange has reduced the lot sizes to half of what they were previously. Effective from April 26 for expirations in May or later, the updated lot sizes will be implemented.
Six other corporations have also had their lot sizes reduced; however, the range of these reductions will apply to expiries in July and beyond. These companies are Power Finance Corporation (PFC), Grasim, Godrej Properties, Bajaj Auto, Tata Motors, and Tata Power.
Lot sizes have been extended for six scrips: Polycab India, Dalmia Bharat, Atul, Zee Entertainment, Bandhan Bank, and Navin Fluorine. Also, these changes will be implemented for expirations in July and beyond.
According to the exchange, the modifications were made in accordance with the Securities and Exchange Board of India's (SEBI) norms.
"The market lots of derivatives contracts shall be revised in accordance with SEBI guidelines for periodic revision of lot sizes for derivatives contracts specified in the SEBI circular dated 13 July 2015," the National Stock Exange stated in a circular released on Thursday.
SME Lots Updated As Well
The exchange also reduced the lot size of 75 scrips on the SME Platform, where small and medium-sized businesses are traded, as part of its half-yearly assessment. These modifications will take effect on April 29. For the 216 SME securities, the lot sizes remain the same.
