There has been a change in the lot size in index derivatives. The National Stock Exchange (NSE) has changed the lot size for index derivatives to protect investors and enhance market stability. The revised lot size will be effective for all new index derivative contracts (including weekly, monthly, three-month, and half-yearly) from November 20, 2024.
The following amendments follow SEBI's circular dated October 01, 2024. It aims to strengthen the equity index derivatives system, according to which the value of an index derivative contract shall not be less than Rs 15 lakh at the time of its launch in the market.

The SEBI circular states, “The lot size will be fixed in such a manner that the contract price of the derivative on the review day is between Rs 15 lakh and Rs 20 lakh.”

NSE said in its circular that the existing weekly and monthly expiry contracts will continue with the existing lot size till their respective expiry dates. In the case of quarterly and half-yearly existing expiry contracts, they will be converted to the new lot size at the end of the day on December 24, 2024, for Bank Nifty and at the end of the day on December 26, 2024, for Nifty.

The lot size of Nifty 50 is currently 25 which will be 75. Similarly, the lot size of Bank Nifty which is 15 will be 30. The lot size of Midcap will increase from 50 to 120.

This decision to change the lot size will directly affect futures and options traders. NSE said in a circular that it will be effective on all new index derivative contracts introduced from November 20, 2024.

The lot size of Nifty50 has been increased from 25 contracts to 75, a 3-fold increase. The lot size of Nifty Bank has doubled from the current 15 to 30.

Nifty Financial Services, also known as Fin Nifty, will have its lot size increased from 25 to 65. The lot size of Nifty Midcap Select has increased from 50 to 120. The lot size of Nifty Next 50 will increase from 10 to 25.

Earlier this month, Sebi had announced a framework to deal with the problem of families losing money in the high-risk-high-reward game of F&O.