NSE Announces Major Revision in Index Derivatives Contract Sizes

The National Stock Exchange of India (NSE) has announced significant changes to the contract sizes of index derivatives, aimed at strengthening the equity index derivatives framework and enhancing investor protection and market stability.

New Contract Value Requirements

SEBI has mandated that index derivative contracts must have a value not less than Rs. 15 lakhs at the time of introduction. The lot size will be adjusted to maintain contract values between Rs. 15 lakhs to Rs. 20 lakhs. These changes were determined based on the average closing prices of underlying indices from September 16 to October 15, 2024.

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Revised Lot Sizes

The following table shows the significant changes in lot sizes for major indices:

Implementation Timeline

The new measures will be implemented in phases:

1. New Contracts: All new index derivatives contracts introduced from November 20, 2024, will follow the revised lot sizes.
2. Existing Contracts:
• Weekly and monthly expiry contracts will continue with current lot sizes until their respective expiry dates.
• Quarterly and half-yearly contracts for BANKNIFTY will transition to new lot sizes on December 24, 2024.
• NIFTY quarterly and half-yearly contracts will transition on December 26, 2024.

Key Expiry Dates

Important transition dates for major indices:

Note: The day spread order book will not be available for certain combination contracts between December 2024 and March 2025.

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