F&O lot size increases in index options or stock options

F&O
1

There is a lot of speculation about increasing the lot size from the current 5 lakhs to between 20-30 lakhs. Is this increase supposed to impact index options such as NIFTY50 and BANKNIFTY or will it also impact options traded on stocks such as RELIANCE, INFY, TCS etc. ?

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2

If the decision to increase the lot size of stock options from 5 lakhs to 20 lakhs is implemented, it suggests that the expert committee members have likely never traded options themselves. Stock options already face liquidity problems at the current lot size. If the lot size is increased fourfold, finding buyers will become nearly impossible.

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3

Thanks! but it does not answer the original question of whether the lot size increases will be in the Index segment or the stock segment. TIA

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4

acc to news, contract size increase is in derivatives so must be in stock options too but cnt say as of nw

5

If it happens it will happen on all instruments, index and stocks.