The lot size of all the Bank Nifty Contracts expiring on or after 30th July 2020 has been changed from 20 contracts to 25 contracts. In other words, this means that the lot of Bank Nifty has increased by 25% after July 2020. (Source: NSE Circular)
Let us understand what it means with an example. Assume, if a particular strike Price of Bank Nifty Option was Price at 50 units of Premium. Here, the margin required under the old format was = 50 * 20 = Rs. 1,000. However, under the new contract size, the margin required will be = 50 * 25 = Rs. 1,250
Along with the change in lot size for Bank Nifty, the lot size for 78 other stock F&O contracts has also been revised. The list is as follows:
| Symbol | Present lot size | Revised lot size |
|---|---|---|
| ACC | 400 | 500 |
| ADANIPOWER | 10000 | 15000 |
| AMARAJABAT | 800 | 1000 |
| AMBUJACEM | 2500 | 3000 |
| APOLLOTYRE | 3000 | 5000 |
| ASHOKLEY | 8000 | 9000 |
| AUROPHARMA | 1000 | 1300 |
| BANDHANBNK | 1200 | 1800 |
| BANKBARODA | 5400 | 8200 |
| BEL | 6000 | 7600 |
| BHARATFORG | 1300 | 1500 |
| BHEL | 10400 | 21000 |
| INFRATEL | 2000 | 2800 |
| BOSCHLTD | 40 | 50 |
| CANBK | 2600 | 5000 |
| CENTURYTEX | 600 | 1400 |
| CIPLA | 1150 | 1300 |
| COALINDIA | 2700 | 3700 |
| CUMMINSIND | 900 | 1200 |
| EICHERMOT | 30 | 35 |
| EQUITAS | 4900 | 7600 |
| EXIDEIND | 2900 | 3600 |
| GAIL | 5334 | 6100 |
| GLENMARK | 1400 | 2300 |
| GODREJCP | 800 | 1000 |
| GRASIM | 750 | 950 |
| HDFCBANK | 500 | 550 |
| HDFCLIFE | 900 | 1100 |
| HEROMOTOCO | 200 | 300 |
| HINDALCO | 3500 | 4300 |
| HINDPETRO | 2100 | 2700 |
| HDFC | 250 | 300 |
| IDFCFIRSTB | 12000 | 19000 |
| IBULHSGFIN | 1200 | 3100 |
| IOC | 4000 | 5700 |
| INDUSINDBK | 400 | 800 |
| NAUKRI | 200 | 250 |
| INDIGO | 300 | 500 |
| ITC | 2400 | 3200 |
| JSWSTEEL | 2300 | 2700 |
| L&TFH | 5600 | 6800 |
| LT | 375 | 550 |
| LICHSGFIN | 1300 | 2000 |
| LUPIN | 700 | 850 |
| M&MFIN | 1600 | 2100 |
| M&M | 1000 | 1400 |
| MARICO | 1300 | 2000 |
| MOTHERSUMI | 5000 | 7000 |
| NATIONALUM | 11700 | 17000 |
| NCC | 9000 | 21000 |
| NMDC | 6000 | 6700 |
| NTPC | 4800 | 5700 |
| ONGC | 4100 | 7700 |
| PAGEIND | 25 | 30 |
| PEL | 309 | 550 |
| PNB | 8300 | 14000 |
| RBLBANK | 1500 | 2600 |
| SRTRANSFIN | 600 | 650 |
| SAIL | 15700 | 19000 |
| SUNPHARMA | 1250 | 1400 |
| SUNTV | 1200 | 1500 |
| TATACHEM | 900 | 2000 |
| TCS | 250 | 300 |
| TATAMOTORS | 4300 | 5700 |
| TATAPOWER | 9000 | 13500 |
| TATASTEEL | 1500 | 1700 |
| FEDERALBNK | 7000 | 8500 |
| RAMCOCEM | 800 | 850 |
| TVSMOTOR | 1350 | 1400 |
| UJJIVAN | 1700 | 2200 |
| UPL | 900 | 1300 |
| VEDL | 3500 | 6200 |
| IDEA | 98000 | 140000 |
| ZEEL | 1700 | 3000 |
Source: NSE Circular dated March 31, 2020 on Revision in Market Lot of Derivative Contracts on Individual Stocks (zip)
Implications of Increased Lot Size:
- The trading activity on these scrips might take a little hit as the cost of Trading will increase
- The Pricing of these contracts will be fair as the Market manipulation will reduce
- The Value of Premiums on Options will also reduce to compensate for increased Lot Size
What do you think about this update in the lot size of Bank Nifty and Other Scrips After July 30, 2020 Expiry? Share your views in the comment section below.
Hitesh Singhi is an active derivative trader with over +10 years of experience of trading in Futures and Options in Indian Equity market and International energy products like Brent Crude, WTI Crude, RBOB, Gasoline etc. He has traded on BSE, NSE, ICE Exchange & NYMEX Exchange. By qualification, Hitesh has a graduate degree in Business Management and an MBA in Finance. Connect with Hitesh over Twitter here!
