The National Stock Exchange (NSE) on October 18, 2024, issued a circular regarding contract size revision for index derivatives.
The following has been stated: -
•The contract size for index derivatives has been revised to increase investor protection and market stability. The new contract value will be at least Rs. 15 lakhs, with lot sizes adjusted to maintain a contract value between Rs. 15 lakhs and Rs. 20 lakhs.
•Existing weekly and monthly contracts will retain their current lot size until expiration, while quarterly and half-yearly contracts will transition to the new lot size on December 24, 2024 (BANKNIFTY) and December 26, 2024 (NIFTY).
•Revised lot sizes are based on the average closing price of underlying indices from September 16 to October 15, 2024.
The detailed circular is given in the document below.
[Circular Ref. No: 128/2024]
