NSE raises minimum contract value for index derivatives

The National Stock Exchange of India (NSE) has increased the minimum contract value for index derivatives traded on its platform. This move aims to strengthen investor protection and market stability, following guidelines set forth by the Securities and Exchange Board of India (SEBI).

The new lot sizes are as follows: Nifty 50 (NIFTY) from 25 to 75, Nifty Bank (BANKNIFTY) from 15 to 30, Nifty Financial Services (FINNIFTY) from 25 to 65, Nifty Midcap Select (MIDCPNIFTY) from 50 to 120, and Nifty Next 50 (NIFTYNXT50) from 10 to 25.

Effective November 20, 2024, all new index derivative contracts (including weekly, monthly, quarterly, and half-yearly) will have a minimum contract value of Rs 15 lakh upon introduction. Further, the lot size will be fixed in such a manner that the contract value of the derivative on the day of review is within Rs 15 lakh to Rs 20 lakh. The revised lot sizes will be based on the average closing price of the underlying index during the period of September 16th to October 15th, 2024.

The existing weekly and monthly expiry contracts will continue with the existing lot size till its respective expiry date. In case of quarterly and half yearly existing expiry contracts, the same shall be transitioned to the new lot size on December 24, 2024, end of the day for BANKNIFTY and December 26, 2024, end of the day for NIFTY.

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