Contract size increased by SEBI from Rs 2lks to Rs 5lks, how will it affect?

The circular: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1436782665000.pdf

The contract size going up, how will it affect liquidity in the markets? Any other collateral damage ?

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The contract value going up was known as SEBI had spoken about it in the press. The positive side is that they increased this to only Rs 5lks and not Rs 10 lks as the fear was. 75 to 80% of turnover today is in options, this contract value increase shouldn’t make any difference on this at all. I guess where turnover and hence liquidity can get impacted would be in the stock futures contracts.