Bank Nifty and Other Shares Lot Size Changed (After July 30, 2020 Expiry)!

The lot size of all the Bank Nifty Contracts expiring on or after 30th July 2020 has been changed from 20 contracts to 25 contracts. In other words, this means that the lot of Bank Nifty has increased by 25% after July 2020. (Source: NSE Circular)

Let us understand what it means with an example. Assume, if a particular strike Price of Bank Nifty Option was Price at 50 units of Premium. Here, the margin required under the old format was = 50 * 20 = Rs. 1,000. However, under the new contract size, the margin required will be = 50 * 25 = Rs. 1,250

Along with the change in lot size for Bank Nifty, the lot size for 78 other stock F&O contracts has also been revised. The list is as follows: SymbolPresent lot sizeRevised lot size ACC400500 ADANIPOWER1000015000 AMARAJABAT8001000 AMBUJACEM25003000 APOLLOTYRE30005000 ASHOKLEY80009000 AUROPHARMA10001300 BANDHANBNK12001800 BANKBARODA54008200 BEL60007600 BHARATFORG13001500 BHEL1040021000 INFRATEL20002800 BOSCHLTD4050 CANBK26005000 CENTURYTEX6001400 CIPLA11501300 COALINDIA27003700 CUMMINSIND9001200 EICHERMOT3035 EQUITAS49007600 EXIDEIND29003600 GAIL53346100 GLENMARK14002300 GODREJCP8001000 GRASIM750950 HDFCBANK500550 HDFCLIFE9001100 HEROMOTOCO200300 HINDALCO35004300 HINDPETRO21002700 HDFC250300 IDFCFIRSTB1200019000 IBULHSGFIN12003100 IOC40005700 INDUSINDBK400800 NAUKRI200250 INDIGO300500 ITC24003200 JSWSTEEL23002700 L&TFH56006800 LT375550 LICHSGFIN13002000 LUPIN700850 M&MFIN16002100 M&M10001400 MARICO13002000 MOTHERSUMI50007000 NATIONALUM1170017000 NCC900021000 NMDC60006700 NTPC48005700 ONGC41007700 PAGEIND2530 PEL309550 PNB830014000 RBLBANK15002600 SRTRANSFIN600650 SAIL1570019000 SUNPHARMA12501400 SUNTV12001500 TATACHEM9002000 TCS250300 TATAMOTORS43005700 TATAPOWER900013500 TATASTEEL15001700 FEDERALBNK70008500 RAMCOCEM800850 TVSMOTOR13501400 UJJIVAN17002200 UPL9001300 VEDL35006200 IDEA98000140000 ZEEL17003000

Source: NSE Circular dated March 31, 2020 on Revision in Market Lot of Derivative Contracts on Individual Stocks (zip)

Implications of Increased Lot Size:

  1. The trading activity on these scrips might take a little hit as the cost of Trading will increase

  2. The Pricing of these contracts will be fair as the Market manipulation will reduce

  3. The Value of Premiums on Options will also reduce to compensate for increased Lot Size

What do you think about this update in the lot size of Bank Nifty and Other Scrips After July 30, 2020 Expiry?  Share your views in the comment section below.

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