NSE Adjusts Lot Size for Nifty Bank and Nifty Mid Select Derivatives Contracts
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Synopsis
On March 30, the National Stock Exchange (NSE) announced changes to the lot sizes of derivatives contracts for Nifty Bank and Nifty Mid Select, increasing their sizes to 35 and 140 respectively. These changes will take effect from July 31, while existing contracts remain unchanged.
Key Takeaways
- Nifty Bank lot size increased from 30 to 35.
- Nifty Mid Select lot size increased from 120 to 140.
- Changes effective from July 31.
- No alterations for other indices' lot sizes.
- Electronic settlements for unlisted shares initiated.
Mumbai, March 30 (NationPress) The National Stock Exchange (NSE) has implemented adjustments to the lot size of derivatives contracts for Nifty Bank and Nifty Mid Select.
As per a circular from the NSE Futures and Options (F&O) department, this decision is in accordance with the regulations established by the Securities and Exchange Board of India (SEBI).
The revised structure indicates that the lot size for Nifty Bank has been increased from 30 to 35. Likewise, the lot size for Nifty Mid Select F&O contracts has been increased from 120 to 140, according to the exchange's announcement.
No modifications have been made to the lot sizes of derivatives contracts for other indices. The lot size for Nifty 50 remains at 75, while Nifty Financial Services stays at 65, and Nifty Next 50 continues at 25.
The updates regarding Nifty Bank and Nifty Mid Select derivatives contracts will not affect the existing monthly expiry contracts set for April 24, May 29, and June 26. These changes will take effect from the monthly expiry on July 31.
Previously, the NSE had announced a change in the expiry dates for derivatives contracts of Nifty, Bank Nifty, and other indices to the last Monday of the month.
However, SEBI has temporarily halted this decision, instructing that all derivatives contracts should expire on either Tuesday or Thursday.
In a related development, the NSE recently initiated electronic settlements for trades of unlisted shares, representing a significant shift from the previously manual process.
Transactions will now be conducted through Central Depository Services India Ltd (CDSL), facilitating a quicker and more efficient transfer process. The stock exchange had made this announcement earlier this month.
Despite this transition, the NSE clarified that its shares will remain unlisted and will not be publicly traded on any stock exchange.
This move ensures that off-market transfers comply with SEBI regulations under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
