On March 28, the National Stock Exchange released a circular outlining changes to the market lot sizes of derivative contracts for eighty-two of the equities that have such contracts.
Effective April 26, the derivative lot size for 42 stocks that have expirations in May 2024 and after will be reduced. Important equities affected are Bharti Airtel, BHEL, Adani Ports, SBI, and L&T.
“In pursuance of SEBI guidelines for periodic revision of lot sizes for derivatives contracts specified in the SEBI circular CIR/MRD/DP/14/2015 dated July 13, 2015, the market lots of derivatives contracts shall be revised.”
Stock Exchange notification
The 128-stock derivative lot size is still in place and includes firms like Adani Enterprises, Bajaj Finance, Asian Paints, and Apollo Hospitals.
This revision only affects the contract for the far-month of July 2024; it will take effect on April 26 for expiries in July 2024 and later. Contracts for May and June will keep the market lots as they are.
On the other hand, the lot size of the final six stocks will be lowered after a fresh multiple. Tata Motors, Bajaj Auto, Grasim Industries, Godrej Properties, Power Finance Corporation, and Tata Power are the stocks that make up this group. On April 26, the modification for these stocks will also apply to expiries.
Along with maintaining the lot size for 216 other equities, the stock exchange reduced the lot size for 75 actively traded small and medium company (SME) companies.
As a result, 75 active securities—Agni Green Power, Atmastco, Basilic Fly Studio, Cellecor Gadgets, Docmode Health Tech, Digikore Studios, Fonebox Retail, Jet Knitwears, Madhusudan Masala, Mono Pharmacare, Sungarner Energies, Srivari Spices, Thaai Casting, and Viviana Power Tech—have had their lot sizes lowered. The lot size modification will become effective on April 29, 2024.
