Banknifty lot size reduced to 20 from today


#1

Bank Nifty lot size has been changed from 40 to 20. If you held a position with one lot of 40, your position will now be for 2 lots of 20 units. Read more here

https://zerodha.com/marketintel/bulletin/199104/change-in-bank-nifty-fo-lot-size


#2

Overnight shocker… I read that this rule was supposed to be implemented from Jan 2019.

I presume extended trading hours will be effective very soon. And affordability index as well.


#3

@nithin can this be implemented to all the f&o segment. If sebi wants to really protect the small investors then it can do that by reducing the overall lot size for all of them. I feel by keeping the lot size so high it is forcing people with even good amount of money to take slightly larger than usual bets. Can a proposal be done to sebi on decreasing the lot size for all of the f&o segment? PS - It might also improve liquidity…


#4

There should be Minis, Niftymini and Bankniftymini! That will protect alot of professional retail traders.


#5

That will reduce the liquity, us markets are absolutely huuuugee, so they can afford to have those, but Indian markets need to have the most number of people trading between a few instruments so that there won’t be slippage and liquidity risk


#6

It does not reduce liquidity or create slippages. The minis work in tandem with mega instruments! Check out the commodity market with crude, nickel, copper, zinc, etc… mini lots! They are always correlated. Offcourse there will be little price difference, but that won’t make huge difference! Anyways, I was talking about “protecting the retail traders” perspective. If SEBI really wants to protect the retail traders, then they must introduce mini lots! That will reduce lots of major financial accidents of retail traders.


#7

SEBI favors increasing contract values in F&O. So don’t think there would be any reduction anytime. Let us hope it doesn’t go up from the current Rs 5lks which is minimum contract value for derivatives.

Banknifty contract value had run up almost to Rs 10lks. NSE reduced it to SEBI prescribed minimum of around 5lks by reducing lot size.


#8

They have already given list of changed contracts

Can you check their circular


#9

No shocker it was given in circular to be done from November FNO expiry, can u check the circular again


#10

#11

Wasn’t there MiniNifty in past? 20 Lot size Nifty FnO. I think they removed that for some years now. I am not sure why would they make bank nifty lot 20 now. Liquidity doesn’t sound a valid reason for this, Else they never would have removed Mininifty


#12

On one hand SEBI is worried about speculation. On the other hand they reduce the lot size. I dont understand it.


#13

SEBI made it mandatory for every F&O contract value to be 5lks. Hence mini nifty etc got removed as it was around 1.5lks. Bank nifty contract value had gone upto 10lks. Hence NSE reduced it to 5lks by reducing the lot size. This isnt’ from SEBI.