Revision in lot size of stock F&O contracts from November 2021 expiry

Trading Announcements
1

As part of its periodic review, NSE will be revising the lot size of 45 F&O contracts with effect from October 29, 2021. You can check the announcement from the exchange here.

The lot size for 34 securities will be revised downwards from November 2021 and later expires. Below is the list of securities:

Sr No Underlying Symbol Present Market Lot Revised Market Lot
1 ACC LIMITED ACC 500 250
2 ADANI ENTERPRISES LIMITED ADANIENT 1000 500
3 AMBUJA CEMENTS LTD AMBUJACEM 3000 1500
4 APOLLO HOSPITALS ENTER. L APOLLOHOSP 250 125
5 ASIAN PAINTS LIMITED ASIANPAINT 300 150
6 BALKRISHNA IND. LTD BALKRISIND 400 200
7 BHARAT FORGE LTD BHARATFORG 1500 750
8 CADILA HEALTHCARE LIMITED CADILAHC 2200 1100
9 COFORGE LIMITED COFORGE 200 100
10 DEEPAK NITRITE LTD DEEPAKNTR 500 250
11 DIVI’S LABORATORIES LTD DIVISLAB 200 100
12 DLF LIMITED DLF 3300 1650
13 GODREJ CONSUMER PRODUCTS GODREJCP 1000 500
14 GODREJ PROPERTIES LTD GODREJPROP 650 325
15 HINDALCO INDUSTRIES LTD HINDALCO 2150 1075
16 ICICI PRU LIFE INS CO LTD ICICIPRULI 1500 750
17 INTERGLOBE AVIATION LTD INDIGO 500 250
18 INFOSYS LIMITED INFY 600 300
19 JUBILANT FOODWORKS LTD JUBLFOOD 250 125
20 DR. LAL PATH LABS LTD. LALPATHLAB 250 125
21 MANAPPURAM FINANCE LTD MANAPPURAM 6000 3000
22 MARICO LIMITED MARICO 2000 1000
23 MINDTREE LIMITED MINDTREE 400 200
24 MUTHOOT FINANCE LIMITED MUTHOOTFIN 750 375
25 NATIONAL ALUMINIUM CO LTD NATIONALUM 17000 8500
26 NESTLE INDIA LIMITED NESTLEIND 50 25
27 PIDILITE INDUSTRIES LTD PIDILITIND 500 250
28 STEEL AUTHORITY OF INDIA SAIL 9500 4750
29 SUN PHARMACEUTICAL IND L SUNPHARMA 1400 700
30 TATA CONSUMER PRODUCT LTD TATACONSUM 1350 675
31 TATA STEEL LIMITED TATASTEEL 850 425
32 TATA CONSULTANCY SERV LT TCS 300 150
33 UNITED BREWERIES LTD UBL 700 350
34 WIPRO LTD WIPRO 1600 800

The lot size for 5 securities has been revised upwards from January 2022 and later expiries. The lot size for November 2021, and December 2021 expiries will continue to trade with the existing lot size. Below is the list of securities:

Sr No Underlying Symbol Present Market Lot Revised Market Lot
1 ALEMBIC PHARMA LTD APLLTD 550 700
2 AUROBINDO PHARMA LTD AUROPHARMA 650 750
3 CITY UNION BANK LTD CUB 3100 3400
4 IDFC FIRST BANK LIMITED IDFCFIRSTB 9500 11100
5 STRIDES PHARMA SCI LTD STAR 675 900

The lot size for 6 securities has been revised downwards, but not in multiples of old lot size. This will be applicable for January 2022 and later expiries.The lot size for November 2021, and December 2021 expiries will continue to trade with the existing lot size. Below is the list of securities:

Sr No Underlying Symbol Present Market Lot Revised Market Lot
1 BAJAJ FINSERV LTD. BAJAJFINSV 75 50
2 BHARTI AIRTEL LIMITED BHARTIARTL 1886 950
3 CONTAINER CORP OF IND LTD CONCOR 1563 800
4 MPHASIS LIMITED MPHASIS 325 175

Following corporate action adjustments on account of bonus issue by SRF and split in face value by IRCTC the existing lot size will be revised from 125 to 625 for SRF and from 325 to 1625 for IRCTC. While the lot size for January 2022 and later expiries will be revised to 375 for SRF and 875 for IRCTC. You can check the announcement from the exchange here.

Sr No Underlying Symbol Present Market Lot after CA adjustment Revised Market Lot after CA adjustment
1 SRF LTD SRF 625 375
2 INDIAN RAIL TOUR CORP LTD IRCTC 1625 875

The lot size for 127 securities will remain unchanged.

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 scrip is beyond this range, there is an upward or downward revision in lot size.

6 Likes
2

These updates are really helpful. Thanks @ShubhS9

3

@ShubhS9 Thanks for mentioning why exchanges revise the lot size.

Any reason for choosing 5-10 lakhs range? Is there any methodology here?

I guess in US and other markets, for most of the stocks, lot size is 100 in FNO segment.

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4

Every country is different, just because they do it doesn’t mean we should do it.

Leverage exposure

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5

@TradeXMaster Around 2012, in India lot value was in the range of 2 lakhs. Not sure why it was changed to 5-10 lakhs range.

If the lot range is decreased, wont it be beneficial for hedging?

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That was done to discourage very small retail traders (who had very less capital) from trading in derivatives that had high exposure. Due to this many small traders were in negative balance, for which the broker suffered. So this is the reason i think.

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If that is the problem, shouldn’t they increase margin limit instead of changing the lot size? @TradeXMaster

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I think they wanted to keep leverage exposure % the same or slightly different.
Increasing margin is also good but derivatives lose their purpose when very less leverage is offered.
So, I think this is why they increased the contract size.
What do you say ?

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9

They play around with margin requirements too :joy: on a weekly basis, just to keep things interesting…. They think trading gets too boring otherwise :joy:

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10

I can still see that the lot size is not revised in the margin calculator and also the order book of nov contracts are still not showing revised contracts. for Example: Marico nov contract still shows lot size of 2000 and not 1000

When will this be changed as expiry is near and people need to take position in nov month expiry now.

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@Abhishek_Kumar_Sah This will take effect from October 29 2021. 4 more days to go.

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The changes come into effect from October 29, 2021.

13

It’s mentioned in this post itself.

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What is the impact of this change ?? If someone has TCS lot with 300nos. November expiry.

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For TCS, the Lot size will be revised from tomorrow to 150 for November expiry too.