Business Standard

NSE slashes lot sizes of 143 stocks; F&O volumes to rise

BS Reporter  |  Mumbai 

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

The lot-size reduction will raise volumes in the futures and options (F&O) segment as the cost of trading in securities concerned will come down significantly.

In February, the exchange had increased the lot sizes of 243 stocks, which had caused liquidity concerns in the derivatives segment as more margin was required for trading. The current revision was made to meet the previously set value of each contract at Rs 2 lakh.

The lot sizes of 19 stocks — including GVK Power, Jaiprakash Associates, LIC Housing Finance, Mahindra & Mahindra, Aurobindo Pharma, Bajaj Auto, Bajaj Hindusthan, Balrampur Chini, Dish TV, Financial Technologies, GMR Infrastructure, Maruti Suzuki, Nagarjuna Fertilizer and Steel Authority of India (SAIL) -- were reduced to one-fourth as their current underlying values have gone up to over Rs 8 lakh.

Similarly, the lot sizes of 122 stocks were halved after their underlying values crossed the Rs 4 lakh-mark. These stocks include Adlabs Films, Allahabad Bank, Alstom Projects India, Andhra Bank, Ashok Leyland, Asian Paints, Associated Cement, Axis Bank, Bank of Baroda, Bharat Earth Movers, Bharat Forge and Bhel.

These revisions will take effect from June 26.

RECOMMENDED FOR YOU

NSE slashes lot sizes of 143 stocks; F&O volumes to rise

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

In a move that may give relief to retail participants in the market, the National Stock Exchange (NSE) has reduced the lot sizes for derivative contracts of 143 stocks. The move came after a nearly two-fold rise in stock prices of many companies in the past couple of months.

The lot-size reduction will raise volumes in the futures and options (F&O) segment as the cost of trading in securities concerned will come down significantly.

In February, the exchange had increased the lot sizes of 243 stocks, which had caused liquidity concerns in the derivatives segment as more margin was required for trading. The current revision was made to meet the previously set value of each contract at Rs 2 lakh.

The lot sizes of 19 stocks — including GVK Power, Jaiprakash Associates, LIC Housing Finance, Mahindra & Mahindra, Aurobindo Pharma, Bajaj Auto, Bajaj Hindusthan, Balrampur Chini, Dish TV, Financial Technologies, GMR Infrastructure, Maruti Suzuki, Nagarjuna Fertilizer and Steel Authority of India (SAIL) -- were reduced to one-fourth as their current underlying values have gone up to over Rs 8 lakh.

Similarly, the lot sizes of 122 stocks were halved after their underlying values crossed the Rs 4 lakh-mark. These stocks include Adlabs Films, Allahabad Bank, Alstom Projects India, Andhra Bank, Ashok Leyland, Asian Paints, Associated Cement, Axis Bank, Bank of Baroda, Bharat Earth Movers, Bharat Forge and Bhel.

These revisions will take effect from June 26.

image

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
V-Guard Inds. 1186.90 20.00
Carborundum Uni. 204.85 7.17
Castrol India 411.55 5.91
Indbull.RealEst. 71.50 5.69
United Spirits 2595.10 5.04
> More on BSE Gainers
Company Price() Chg(%)
V-Guard Inds. 1194.95 20.00
Igarashi Motors 651.35 6.21
Castrol India 411.75 6.13
Indbull.RealEst. 71.40 5.54
Nitin Fire Prot. 36.85 5.29
> More on NSE Gainers
Company Price() Chg(%)
Yamini Invest 27.45 -10.00
Amtek Auto 33.65 -5.34
Ashiana Housing 149.15 -5.21
Idea Cellular 113.60 -5.02
Balkrishna Inds 657.50 -5.00
> More on BSE Gainers
Company Price() Chg(%)
ABG Shipyard 38.45 -9.95
Amtek Auto 33.30 -6.33
Balkrishna Inds 652.95 -5.53
Idea Cellular 113.50 -5.30
Ashiana Housing 149.70 -5.04
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard