Revision in lot size of Index derivative contracts

Circulars
1

NSE has announced a revision in the market lot of index derivative contracts following SEBI’s periodic review guidelines. The new lot sizes will come into effect from October 28, 2025 (EOD).

Index Symbol Current lot size Revised lot size
Nifty 50 NIFTY 75 65
Nifty Bank BANKNIFTY 35 30
Nifty Financial Services FINNIFTY 65 60
Nifty Midcap Select MIDCPNIFTY 140 120
Nifty Next 50 NIFTYNXT50 25 25 (unchanged)

The revision is based on the average closing price of the underlying indices for September 2025, ensuring contract values stay within SEBI’s prescribed range.

The current lot sizes will continue for all weekly and monthly contracts until December 30, 2025, expiry. From December 30, 2025 (EOD), the revised lot sizes will apply to all quarterly and half-yearly contracts as well.

Revision for weekly and monthly contracts

Index Derivatives Expiry cycle Last expiry with existing lot size First expiry with revised lot size
NIFTY Weekly 23-Dec-2025 06-Jan-2026
NIFTY Monthly 30-Dec-2025 27-Jan-2026
BANKNIFTY Monthly 30-Dec-2025 27-Jan-2026
FINNIFTY Monthly 30-Dec-2025 27-Jan-2026
MIDCPNIFTY Monthly 30-Dec-2025 27-Jan-2026

Revision for quarterly and half-yearly contracts

Index Derivatives Expiration Cycle Expiry Date Particulars
NIFTY Quarterly & Half-yearly 31-Mar-2026* Revised from Dec 30, 2025 (EOD)
BANKNIFTY Quarterly 31-Mar-2026* Revised from Dec 30, 2025 (EOD)

The March 2026 contracts introduced as quarterly expiries will become the far-month contracts after the December 2025 monthly expiry.

Note:

  • From December 30, 2025 (EOD), the lot size revision will apply to Nifty and Bank Nifty quarterly and half-yearly derivative contracts. If you hold open positions in these contracts that don’t align with the new lot size, you won’t be able to square them off after the revision and will need to hold them until expiry.

  • To avoid this, you can either square off the position beforehand or adjust your contract quantity to match the revised lot size.

  • Dates may change if a trading holiday is declared.

You can refer to the NSE circular here:

https://nsearchives.nseindia.com/content/circulars/FAOP70616.pdf

7 Likes
4

Again and again changing rules in derivatives - market will be dead - market will be flat , nifty will never reach high - investor will loose confident - market will trade flat for another 10 years like china, south korea because they change rules heavily here and there

our market is not like usa -

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5

What rules ?

6

Hi @nithin_kumrr, what about the freeze quantity?, because 1800 is not divisible by 65.

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7

@TradeB2B this is part of an existing rule. Lot size will be reviewed every 6 months and might be revised or left unchanged depending on the last 1 month of price data prior to the review.

See page 6, section 1.1.4.3 in this doc: (part of SEBI master circulars to exchanges)

I interpret this as 75*(avg Nifty price in September) went above 20L so they had to revise the lot size downwards to keep it within 15-20L as per their highlighted rule above. I haven’t cross checked in the data though.

8

The freeze quantity isn’t always tied directly to the lot size. NSE usually reviews it separately. If any changes are needed after the lot size revision, they’ll be updated through a separate circular. For now, it should stay as is. @Gagan_suryaputra

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9

RIP long term options traders :coffin:

Even lots for Nifty50 is 975qty in case anyone wishes to continue holding positions :face_with_spiral_eyes:

@nithin_kumrr - will you be able to share details around extra margins zerodha will block for uneven lots starting 2026 (qty not in multiples of 65)?

1 Like
11

We’ll block an additional 5% of the contract value for any excess quantity held in the short position. So, if you’re holding 75 units and the new lot size is 65, the extra 10 units will attract a 5% margin block.

For example, if Nifty closes at 26,000 on the December expiry and you hold one short lot of 75 units, the calculation for the excess 10 units would be:

26,000 × 10 × 5% = ₹13,000.

6 Likes
12

Thanks for replying.
From last year, I also remember one cannot use collateral margin to cover this, and the 13,000 in the above example has to be brought in in cash. Is it still the case?

13

yes, this additional margin will be blocked in the ledger and it has to be covered from cash margin.

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14

Hi, I have a follow up question on the changes. Sorry if it’s there somewhere in the old circulars.

My understanding is that the “prescribed range” they talk about is 15-20 lacs. And avg nifty 50 closing price in sep 2025 was 25,010.
Turns out, even with a lot size of 75, the contract size WAS within the prescribed range (18.75 lacs). So what’s the rationale behind the change?

And secondly, why 65 and not 67? Is there a guideline that the size will be in multiples of 5? Or in future, they can take it to any number they please?
@nithin_kumrr @Adarsh_Patil

15

Yeah, you’re right… it was within range. But exchanges review lot sizes every 6 months, and can tweak them even if they’re within limits. Also, lot size has to be a multiple of 5, so they picked 65 (closest to the midpoint).
Check this circular page 6 point 1.1.1.4 .

3 Likes
16

So you can’t close that 10 units until expiry?

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17

I wonder if they realise that there are strikes (extremely illiquid) till 2029 that have OIs…
Anyway, I will have to consider that 5% extra cash margin block as the cost of doing business :disappointed:

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18

5% would be the least of your worries,if trade goes against you and NIFTY enters manic phases on any side.

19

What I have are all cash secured puts, so the 5% is the only worry I have tbh

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20

@Adarsh_Patil
I have a March 2026 NIFTY position 75 Qty, I know that for this contract Last expiry with
existing lot size 31-3-2026
But from 30-12-2025 EOD, revised lot 65 quantities were introduced and traded from the exchange.

If I want to exit my NIFTY 75 Qty for the March 2026 Contract after 30-12-2025 with 75 Qty will it be allowed, or need to exit it from my end?

If I am looking to hold till expiry,then cash settlement will happen till 31-3-2026

21

After December, you can exit with 65 quantity at any time; the remaining 10 units can be kept for cash settlement upon expiry.

You can do this with any lot size or quantity.

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22

Will i be able sell 10 quantity of nifty.? To match new lot size 65?as currently i have 75 quantity

23

No. Never.

1 Like