The revision in lot sizes for index derivatives is designed to keep the contract values within SEBI’s range. Ensure you’re aware of the expiry dates for both monthly and quarterly contracts. If you hold positions, make sure to adjust them before December 30, 2025, to avoid complications.
what about long-dated contract i.e Expiring on Dec 2026 ?
I am holding “NIFTY 26DEC 25000 PE” of 75 quantity then should i exit from my position ?
if so after which date we can buy long dated contracts with modified quantity
@rajesh_kumar_sahoo you can square off 65 units after December 30, 2025. However, the remaining 10 qty will be cash settled upon expiry.
Really sebi making a headache for us , they are gambling with trader ,
sebi only increase the lot size , now they are decreasing , all calculation are went wrong in index
1 Like
index derivative contract is valued between ₹15 lakh and ₹20 lakh
For a nifty DEC 2026 contract, does the same rule apply?
lets say for a particular strike, i currently have 1 lot of 75, it’s lot size will also change?
Your Lot size won’t change. But tradeable lot size will and you will no longer be able to sell/buy 75 as 1 lot, but only 65. So you won’t be able to close 10/lot until expiry unless you close tomorrow.
1 Like
when lot sizes change, this happens after December expiry only? for far month, i cant recall the pattern
The exact date and the expiry is given in the first post of this thread.
1 Like
the issue is this wording here
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) |
appears as though this is last expiry.
Nifty is the only one with ultra long dated expiries.
Hey @Adarsh_Patil , some observations and queries regarding the implementation of this cash balance blocked:
- I have a total of 80 odd qty across strikes. As per your example above, 25050x80x5% = 1,00,200 should have been blocked. But the actual amount blocked is higher (close but still has discrepancy, screenshots below)
- How can the amount not change over the last 1 week, while nifty dropped from 25800 to 25050?
- Why is this amount not being refreshed daily, basis Nifty closing? This wasn’t the case last time when Nifty50 lot size changed from 25 to 75 (and Nifty was going up so you were blocking extra funds every day).
On an adjacent topic, why do you guys start blocking ELM margins 3 days before expiry? I understand this Monday is a holiday but then apply ELM at Tue BOD. Incorrectly displaying large negative cash balance starting Saturday for a Tue expiry is not justified.
The margin is blocked based on the previous month’s Nifty closing value. This is correct. Funds remain blocked at the previous month’s close unless there is a change in the position.
The blocked amount does not change daily. It remains the same for the entire month, regardless of Nifty’s daily movement. You will see the updated amount after Tuesday’s monthly expiry.
Since there will be no changes during the holiday period, we have blocked the ELM margin in advance. This helps traders know their fund requirement early and reduces the risk of forced liquidation from our side.
Like I said, this was not the case last time around. Why can’t things be consistent specially given there’s no regulatory guidelines around blocking extra margins for odd lots and this is completely done at zerodha’s discretion. You have not only blocked an amount that is more than what was communicated, but you will also charge me DPC on the negative account balance that might happen because of the extra cash blocking. See how it was done the last time around:
If the reason to block this extra cash (which is not mandated by the regulator) is to safeguard brokers, should the broker atleast compensate me with liquidcase returns on my funds that is lying “safely” with you? I’m not sure how the regulators have left so much to brokers discretion.
cc: @nithin
The ledger entry shown in the screenshot was likely made during the last expiry before the lot size change, where we block daily according to the position you hold. We had sent sufficient emails asking you to make changes according to the new lot size. We sent these emails almost 15 days in advance on a daily basis.
The amount we’ve blocked is to cover the maximum risk your position could create. This ensures you don’t lose more than you have. There’s another reason we block extra funds: if margin requirements increase for your position and you don’t add funds, the broker faces an upfront penalty. We cannot pass this penalty to clients. Depending on the situation, this penalty ranges from 1% to 5% per day.
We have clients with positions expiring on December 2029. If we allow these positions without blocking additional funds, it creates a huge risk for the broker. We cannot even liquidate the positions to cover the shortfall. If we do, it will end up creating odd lot in the opposite direction, which would be a violation we want to avoid.
Regarding the revised ledger entries, updating them daily serves no purpose since the difference in the amount will be minor. As we’ve informed you, we will update the revised entries monthly until March. After the March expiry, we will create these ledger entries quarterly.
3 Likes