How does revision of lot size affect my existing positions?


#1

I found this circular stating that 17 F&O contracts will have a reduction in lot size and 48 will have an increase.


How does this affect my existing positions in these contract?
I saw that this is applicable from Jan 2019 but my Bank Nifty contract has different lot sizes

@nithin @Bhuvanesh @MohammedFaisal @Kshiteesh_Saralaya


#3

When a contract undergoes an increase in lot size, it is applicable to the new contracts introduced(In this case, Jan 2019). However, if there is a reduction in the lot size even existing positions held in the current and near month will be affected.

Here’s how:
Downward revision(Decrease in Lot size)
The reduction in lot size is usually done in whole ratios to accommodate for calendar spread contracts and easy rollovers. For instance, Bank Nifty was revised in a ratio of 2:1(Lot size of 40 became 20).
If the revision in the contract is not a multiple of the lot size, the contract will not have calendar spreads for the revised month.
Stocks that underwent downward revision

Underlying Symbol Present Market Lot Revised Market Lot
BAJAJ FINANCE LIMITED BAJFINANCE 500 250
BATA INDIA LIMITED BATAINDIA 1100 550
BRITANNIA INDUSTRIES LIMITED BRITANNIA 200 100
DABUR INDIA LIMITED DABUR 2500 1250
DIVI’S LABORATORIES LIMITED DIVISLAB 800 400
EXIDE INDUSTRIES LIMITED EXIDEIND 4000 2000
GODREJ CONSUMER PRODUCTS LIMITED GODREJCP 1200 600
HDFC BANK LIMITED HDFCBANK 500 250
JSW STEEL LIMITED JSWSTEEL 3000 1500
KPIT TECHNOLOGIES LIMITED KPIT 4500 2250
LARSEN & TOUBRO LIMITED LT 750 375
MINDTREE LIMITED MINDTREE 1200 600
NESTLE INDIA LIMITED NESTLEIND 100 50
PIDILITE INDUSTRIES LIMITED PIDILITIND 1000 500
RELIANCE INDUSTRIES LIMITED RELIANCE 1000 500
TATA ELXSI LIMITED TATAELXSI 800 400
TATA CONSULTANCY SERVICES LIMITED TCS 500 250

Upward Revision(Increase in Lot size)
Existing contracts will have no effect on the change in lot size. New contracts will be available in the increased lot size.
Calendar spreads for the revised month will not be available. In this case, Dec 18- Jan 19 spreads.
Stocks that underwent an upward revision

Underlying Symbol Present Market Lot Revised Market Lot
ALLAHABAD BANK ALBK 11000 13000
BHARAT ELECTRONICS LIMITED BEL 4950 6000
BEML LIMITED BEML 500 700
CAN FIN HOMES LIMITED CANFINHOME 1250 1800
CAPITAL FIRST LIMITED CAPF 800 900
CASTROL INDIA LIMITED CASTROLIND 2800 3400
CEAT LIMITED CEATLTD 350 400
CENTURY TEXTILES & INDUSTRIES LIMITED CENTURYTEX 550 600
CHENNAI PETROLEUM CORPORATION LIMITED CHENNPETRO 1500 1800
DLF LIMITED DLF 2500 2600
ENGINEERS INDIA LIMITED ENGINERSIN 3500 4100
THE FEDERAL BANK LIMITED FEDERALBNK 5500 7000
GUJARAT STATE FERTILIZERS & CHEMICALS LIMITED GSFC 4500 4700
HINDUSTAN CONSTRUCTION COMPANY LIMITED HCC 18000 38000
HINDUSTAN PETROLEUM CORPORATION LIMITED HINDPETRO 1575 2100
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED ICICIPRULI 1300 1500
VODAFONE IDEA LIMITED IDEA 7000 12000
IDFC BANK LIMITED IDFCBANK 11000 12000
IFCI LIMITED IFCI 25000 35000
THE INDIA CEMENTS LIMITED INDIACEM 3500 4500
BHARTI INFRATEL LIMITED INFRATEL 1700 2000
INDIAN OIL CORPORATION LIMITED IOC 3000 3500
IRB INFRASTRUCTURE DEVELOPERS LIMITED IRB 2500 3200
JET AIRWAYS (INDIA) LIMITED JETAIRWAYS 1200 2200
JAIPRAKASH ASSOCIATES LIMITED JPASSOCIAT 34000 55000
KAJARIA CERAMICS LIMITED KAJARIACER 1000 1300
THE KARNATAKA BANK LIMITED KTKBANK 4500 4700
MOTHERSON SUMI SYSTEMS LIMITED MOTHERSUMI 1600 1900
MANGALORE REFINERY AND PETROCHEMICALS LIMITED MRPL 4500 7000
NBCC (INDIA) LIMITED NBCC 6000 8000
ORIENTAL BANK OF COMMERCE ORIENTBANK 6000 7000
PC JEWELLER LIMITED PCJEWELLER 1500 6500
POWER FINANCE CORPORATION LIMITED PFC 6000 6200
PUNJAB NATIONAL BANK PNB 5500 7000
RELIANCE COMMUNICATIONS LIMITED RCOM 28000 34000
REPCO HOME FINANCE LIMITED REPCOHOME 900 1100
RELIANCE POWER LIMITED RPOWER 13000 16000
SIEMENS LIMITED SIEMENS 500 550
SREI INFRASTRUCTURE FINANCE LIMITED SREINFRA 7000 12000
STRIDES PHARMA SCIENCE LIMITED STAR 800 1100
SUZLON ENERGY LIMITED SUZLON 45000 76000
SYNDICATE BANK SYNDIBANK 9000 15000
TATA COMMUNICATIONS LIMITED TATACOMM 800 1000
TATA MOTORS LIMITED TATAMOTORS 1500 2000
TATA MOTORS LIMITED TATAMTRDVR 2800 3800
TV18 BROADCAST LIMITED TV18BRDCST 8500 13000
UNION BANK OF INDIA UNIONBANK 6000 7000
VEDANTA LIMITED VEDL 1750 2300

Why do exchanges revise the lot size?
SEBI mandates that the contract value of all F&O contracts remain between 5 to 10 Lakhs. In the periodic review(every 6 months), if the contract value of a scrip is beyond this range, there is an upward or downward revision in lot size.


#5

As part of the periodic review there has been revisions made to the lot sizes, effective from 26th April, 2019.

The lot sizes of 43 contracts have been revised upwards, and 5 contracts have been revised downwards.

Only the far month contract i.e. July 2019 expiry contracts will be revised for market lots. Contracts with maturity of May 2019 and June 2019 would continue to have the existing market lots.

Downward revision:

Sr No Underlying Symbol Present Market Lot Revised Market Lot
1 Hindustan Unilever Limited HINDUNILVR 600 300
2 Icici Bank Limited ICICIBANK 2750 1375
3 Kotak Mahindra Bank Limited KOTAKBANK 800 400
4 Srf Limited SRF 500 250
5 Upl Limited UPL 1200 600

Upward revision:

Sr No Underlying Symbol Present Market Lot Revised Market Lot
1 Arvind Limited ARVIND 2000 6000
2 Ashok Leyland Limited ASHOKLEY 4000 6000
3 Bank Of Baroda BANKBARODA 4000 4500
4 Birlasoft Limited BSOFT 2250 5100
5 Ceat Limited CEATLTD 400 500
6 Cesc Limited CESC 550 800
7 Cg Power And Industrial Solutions Limited CGPOWER 12000 12500
8 Chennai Petroleum Corporation Limited CHENNPETRO 1800 2000
9 Dewan Housing Finance Corporation Limited DHFL 1500 4000
10 Dish Tv India Limited DISHTV 8000 14000
11 Dlf Limited DLF 2600 2800
12 Engineers India Limited ENGINERSIN 4100 4600
13 Exide Industries Limited EXIDEIND 2000 2400
14 Godrej Consumer Products Limited GODREJCP 600 800
15 Gujarat State Fertilizers & Chemicals Limited GSFC 4700 5200
16 Idbi Bank Limited IDBI 10000 12000
17 Ifci Limited IFCI 35000 38000
18 Indiabulls Housing Finance Limited IBULHSGFIN 500 800
19 Indusind Bank Limited INDUSINDBK 300 400
20 Infibeam Avenues Limited INFIBEAM 4000 12500
21 Irb Infrastructure Developers Limited IRB 3200 3600
22 Jindal Steel & Power Limited JINDALSTEL 2250 3200
23 Jsw Steel Limited JSWSTEEL 1500 2000
24 Motherson Sumi Systems Limited MOTHERSUMI 2850 3300
25 National Aluminium Company Limited NATIONALUM 8000 10000
26 Nbcc (India) Limited NBCC 8000 8500
27 Reliance Capital Limited RELCAPITAL 1500 3000
28 Reliance Infrastructure Limited RELINFRA 1300 4000
29 Reliance Power Limited RPOWER 16000 48000
30 Repco Home Finance Limited REPCOHOME 1100 1200
31 Strides Pharma Science Limited STAR 1100 1200
32 Tata Chemicals Limited TATACHEM 750 900
33 Tata Elxsi Limited TATAELXSI 400 600
34 Tata Global Beverages Limited TATAGLOBAL 2250 2700
35 Tata Motors Limited TATAMOTORS 2000 3000
36 Tata Motors Limited TATAMTRDVR 3800 6000
37 The India Cements Limited INDIACEM 4500 5300
38 Tv18 Broadcast Limited TV18BRDCST 13000 15000
39 Tvs Motor Company Limited TVSMOTOR 1000 1100
40 Vedanta Limited VEDL 2300 3000
41 Vodafone Idea Limited IDEA 19868 28000
42 Wockhardt Limited WOCKPHARMA 900 1300
43 Yes Bank Limited YESBANK 1750 2200

Calendar spreads for the revised month will not be available for the combination contract of June 2019 July 2019 expiry.

Check out this circular from NSE for more.