SEBI lot size increase

Wht are the chances SEBI increase lot size to 20-30 lakh market equivalent
How much time required to implement this
@nithin plz give your views on this

I can’t really comment or give views on any of this as I am part of SEBI SMAC (Secondary marked advisory committee) where these discussions are taking place.

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I think SEBI is testing the water :slightly_smiling_face: by leaking the news!!

Ok as per your experience can you plz give approximate time that could take to implement this changes or final decisions from this point

I hope you’re trying to explain to these people that interventionism beyond a point leads to second order effects: one I can think of is now the entire option volumes get concentrated in the 1 weekly contract per exchange.

Options are the only instrument in the market where your risks can be capped. Ironically I have never heard any specific warnings against Futures, where liabilities are theoretically unbounded.

It’s never about saving retail traders and their losses. That’s just a cover up. They want to equalize , cost and volatility.
Futures are already volatile than options, and comparatively with less retail participation… thus they have low margins.
Whereas options , Cost is cheap and volatility is high and retail participation is very high… That makes options’ cost to be hiked.

my sincere request is to share the data of options that shows spurts in options volume is only because of weekly settlements taking place on different days, tuesday, wednesday thursday, if they settle on 1 day example thursday only, then this will bring down the volumes and the current issue of high volumes in options will get automatically solved, the lot size increase will kill the market, thats for sure

i think im gonna trade commodity futures now its easier game

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I think one important suggestion should be investor education… that’s not done at all and regulations are being considered directly

Put a condition like derivatives certification program for trading with a capital larger then a threshold

As BSE CEO pointed out there is no regulation on gaming sites which has more than 14 crore users…but they are ready to control 43lakh options traders

Hope they decide by data into perspective rather then coming with a thought they need curb this and use the data to support that regulation.

Does anyone know if this proposed 2-3x increase in lot size would be happening?
That would increase risk for new traders learning with 1 lot and also experienced traders forward testing with 1 lot.

Check this out. The proposed change around increase in contract size is happening. The date of effect is Nov 20, 2024.

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Contract size has been revised till mar 2025 . What about jun 2025 and later expiries?

Vignesh, for long dated option contracts (quarterly and hf-yearly) the lot size for Nifty 50 will be revised on December 26.

Please check out this post where we’ve explained from when the changes come into effect:

@ShubhS9 why today lot size not increased

Why today lot sizesd is increase and when the lot will increase which expiry date will increase nifty and bank nifty can any one tell me

Its all there

But the lot size is not increased

Lot sizes will increase periodically. We’ve mentioned the dates in the above link shared by @SpacemanSpiff