The National Stock Exchange (NSE) has announced a reduction in lot sizes for key index derivatives, including Nifty 50, Nifty Bank, Nifty Financial Services, and Nifty Midcap Select, aiming to make trading more accessible by lowering contract values and margin requirements.
Key Changes in Lot Sizes
- Nifty 50: Lot size reduced from 75 to 65; contract value drops from ~₹18.6 lakh to ~₹16.12 lakh; margin requirement lowers from ₹2.04 lakh to ₹1.77 lakh.
- Nifty Bank: Lot size reduced from 35 to 30.
- Nifty Financial Services: Lot size reduced from 65 to 60.
- Nifty Midcap Select: Lot size reduced from 140 to 120.
Effective Dates
- The new lot sizes will apply from the monthly expiry on December 30, 2025.
- Until then, existing lot sizes remain valid, and traders should carefully track weekly and monthly contract expiries.
Strategic Impact
The move aligns with SEBI’s minimum contract value standard of ₹15 lakh and is expected to:
- Reduce capital requirements for traders
- Improve market participation and liquidity
- Standardize derivative contract values across indices
Summary
- NSE reduces lot sizes for Nifty and Bank Nifty derivatives to lower contract values and margins.
- Changes effective from December 30, 2025, with transitional guidance until then.
- Expected benefits: greater accessibility, improved liquidity, and better alignment with SEBI norms.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.