Regulatory changes regarding the Index Contract LOT size

Regulatory changes regarding the Index Contract LOT size

Dear Client,

As per SEBI’s new guidelines, the market lot sizes for Index Option Contracts across multiple indices will be revised, effective for long-dated options expiring in March 2025 and June 2025 ( Quarterly and half yearly ) .The revised market lots will come into effect as follows 

For quarterly and half-yearly contracts:

  • Lot size will change on December 26, 2024, end of the day for Nifty.
  • Lot size will change on December 24, 2024, end of the day for Bank Nifty.
  • Lot size will change on December 27, 2024, end of the day for Sensex.

 Revised Market Lot Sizes:

Sr. No. Symbol Present Market Lot Revised Market Lot
1 NIFTY 25 75
2 BANKNIFTY 15 30
3 FINNIFTY 25 65
4 MIDCPNIFTY 50 120
5 NIFTYNXT50 10 25
6 SENSEX 10 20
7 BANKEX 15 30
8 SENSEX50 25 60

 

Actions Required 

Action Required Details
For Clients with Open Positions  If your current positions align with the revised lot sizes, they will be adjusted automatically.
For positions not in multiples of the revised lot size, you must square off the remaining quantities by 23 Dec 2024 
 Positions not squared off by the deadline will be automatically squared off by 5paisa on or after on 23 December 2024 on a best-effort basis.
Post-Revised Market Lot Implementation Starting 26 December 2024, you can recreate positions with the new lot sizes as specified.


Adjustment Example for Lot Size Revision with respect to NIFTY


Scenario Example Action by 5paisa
Quantities are already in multiples of the revised lot size (75) You hold 150 quantities (6 current lots of 25). Your position will remain unaffected, as it will be adjusted into 2 lots of 75. No intervention is required.
Quantities are not in multiples of the revised lot size You hold 50 quantities (2 current lots of 25). You need to square off this position before 2 December 2024, as it cannot be adjusted into the new lot size.
Quantities are partially in multiples of the revised lot size and partially not You hold 125 quantities (5 current lots of 25). 75 quantities will be adjusted into the new lot size (1 lot of 75). The remaining 50 quantities must be squared off by you before 23 December 2024.

Please Note: 

Starting December 20 , 2024, if you hold positions in odd lot quantities, an additional 5% margin will be applicable. To avoid any impact, ensure your position size aligns with the revised market lot multiples. If the lot size is not adjusted or sufficient margins are not maintained, our Risk Management Team at 5paisa will square off your position starting December 23, 2024, to either bring it to a multiple of the revised lot size or reduce it to zero if it falls below the revised lot size.

  • System square-offs will be executed at market order prices.
  • After 23 December 2024, any remaining quantities in the old lot size may remain open due to potential lack of liquidity until the expiry of the respective option.

 

We strongly recommend reviewing your portfolio and taking appropriate actions to ensure a smooth transition.

For assistance, please contact us at support@5paisa.com or 8976689766.

Best regards,
Team 5paisa