Revision in Market Lot of Derivative Contracts on Individual Stocks | Motilal Oswal

Revision in Market Lot of Derivative Contracts on Individual Stocks




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On September 30, 2020, the NSE issued a circular (87/2020) regarding the revision in market lot of derivative contracts on individual stocks. As per SEBI’s guidelines for periodic revision of derivative lot sizes, this is how the new guidelines go.

The circular was accompanied by four-part annexures that gave the details of the underlying assets in each of the categories mentioned above.

The circular also stated that in case of the underlying assets mentioned in annexures 2 and 4, the following particulars would be applicable.

- Only the far month contracts i.e. January 2021 expiry contracts will be revised for market lots.

- So, contracts with maturity of November 2020 and December 2020 will continue to have the existing market lots only.

- All contracts expiring January 2021 expiry and beyond will have revised market lots.

- The day spread order book will not be available for the combination contract of Dec 2020 – Jan 2021 expiry.

- The average of the closing price of the underlying has been taken for the one month period starting September 1, 2020 and ending September 30, 2020.

- This circular comes into effect from October 30, 2020.

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