Skip to main content

SEBI increases lot sizes to Rs. 5 lakhs

In a major move that could change the game in derivatives market, the Securities and Exchange Board of India (SEBI) has increased the minimum contract size in equity derivatives segment from Rs. 2 lakhs to Rs. 5 lakhs.

nifty futures


Accordingly, the framework for determination of lot size for derivatives contracts is modified as under:

  • The lot size for derivatives contracts in equity derivatives segment shall be fixed in such a manner that the contract value of the derivative on the day of review is within Rs. 5 lakhs and Rs. 10 lakhs.
  •  For stock derivatives, the lot size (in units of underlying) shall be fixed as a multiple of 25, provided the lot size is not less than 50. However, if the contract value of the stock derivatives at the minimum lot size of 50 is greater than Rs. 10 lakhs, then lot size shall be fixed as a multiple of 5, provided the lot size is not less than 10.
  •  For index derivatives, the lot size (in units of underlying) shall be fixed as a multiple of 5, provided the lot size is not less than 10.

The aforesaid provisions shall be made effective from the next trading day after expiry of October 2015 contracts. The stock exchanges shall review the lot size once in every 6 months based on the average of the closing price of the underlying for last one month,

This move will impact derivatives volumes in the short-run, since retail participation will be reduced substantially.

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...