Because of the recent massive bull run, most of the stocks have made tremendous gains in their price and because of that, the net value of the lot sizes of several scrips in Fno have breached their 10 lacs limit. It’s so absurd to the point that some scrips have over 15 lacs lot size even. What is the regulator doing about this? The regulator otherwise is pretty keen on the whole of agenda of “retailers are dumb and need to be saved from themselves”. What about now? Such enormous lot sizes are likely to hurt retailers only. If one is to take a position in Fno, they are probably gonna suffer a significant loss at once cause they’d be concentrating a huge sum of capital in a single trade. Even worse, if someone buys an option they are gonna be paying a lot in premium and next thing you know that money is down to zero. It’s almost like SEBI doesn’t want retailers in the market is why they keep doing things like this, deterring them from trading in the first place. I mean I know they kinda said that themselves and the brokers even are supportive of that but it’s sad how discriminatory that agenda is. You guys don’t know when to stop or what? Stop hurting retailers please. It’s enough already.
Avi, there is periodic review of Market Lot size of securities and if any contract is below 5 lakhs or over 10 lakhs, there is upward or downward revision. This is done every 6 months and last revision was done in October 2020.
You can refer to this post for more information: Revision in Market Lot of Derivative Contracts of 28 Stocks
I am already aware of the 6 month revision period but this time around the lot size values have reached wack levels of high due to the striding peaks being made by the market in such a short period. My complaint is that a 6 month period to revise lot sizes isn’t proactive enough as it is evident from the fact that a couple scrips even have more than 15 lacs worth of lot sizes. I don’t find it healthy is what I am saying. Perhaps, some scrips might even end up having 20 lacs lot sizes with the pace that the market is currently moving. Who knows? But in the meanwhile, retailers are being exposed to too much risk. I feel that this should be conveyed to the authorities immediately and an exception should be made by immediately revising the lot sizes starting from whatever new month that could be possible. Retailers can’t communicate with the authorities, they can only contact their brokers if there is an issue. So please, this should get get conveyed to the exchange and the regulator on an urgent basis. Honestly, I am saying this cause I firmly stand with retailers and don’t want them to lose money.