Lot size changes in F&O Stock Derivative contracts; 30th Sept, 2022

Revision in F&O lot size of stock derivatives
Revision in F&O lot size of stock derivatives

Indian Market
by 5paisa Research Team Last Updated: 2022-10-03T15:52:25+05:30

On 30th September 2022, SEBI has issued a circular intimating about the changes proposed to the lot size of various F&O contracts. Now lot sizes are the fixed units of stock in which future and options can be traded. Typically, SEBI tries to keep F&O lot sizes at around the value of Rs7 lakhs to Rs10 lakhs on a median basis. F&O lot sizes are normally changed in 4 ways. Lot sizes can be increased, or the lot size can decreased or it can be decreased (not as a multiple) of the original lot size. Alternatively, lot sizes can also be kept unchanged. Here is a summary of the major lot size changes and their effective dates.


Gist of the lot size changes in F&O; 30th September 2022


The table below captures the essence of lot size changes in F&O, with the number of companies and the likely effective date of such change.

 

List Name

Contract Size Changes

Number of F&O companies

Effective date of implementation

List 1

Revised downwards as a multiple of old lot size

10 companies

October 28th 2022 (for November 2022 and later expiries)

List 2

Revised Upwards

22 companies

October 28th 2022 (for January 2023 and later expiries)

List 3

Revised downwards but not as a multiple of old lot size

5 companies

October 28th 2022 (for January 2023 and later expiries)

List 4

No change in Contract Size

157 companies

Not Applicable

 

List 1 – Lot sizes are revised down as multiple of old lots


Here is a list of companies where the contract lot size has been reduced as an exact multiple of the old lot sizes. Normally, the lot sizes are reduced where there has been a sharp appreciation in the stock price since the last review.

 

Sr No

Underlying

     Symbol

Present Market Lot

Revised Market Lot

1

ADANI ENTERPRISES LIMITED

    ADANIENT

500

250

2

ADANI PORTS AND SPECIAL ECONOMIC ZONE LIMITED

 ADANIPORTS

1250

625

3

BHARAT ELECTRONICS LIMITED

       BEL

11400

5700

4

EICHER MOTORS LIMITED

EICHERMOT

350

175

5

ESCORTS KUBOTA LIMITED

ESCORTS

550

275

6

THE FEDERAL BANK LIMITED

FEDERALBNK

10000

5000

7

INDUSIND BANK LIMITED

INDUSINDBK

900

450

8

ITC LIMITED

ITC

3200

1600

9

TATA CHEMICALS LIMITED

TATACHEM

1000

500

10

TVS MOTOR COMPANY LIMITED

TVSMOTOR

1400

700

 

The lot size changes above are intended to restore the value of one lot back to the prescribed range by SEBI.

 

List 2 – Lot sizes revised upwards

Here is a list of companies where the contract lot size has been increased as multiple of the old lot sizes. Normally, the lot sizes are increased where there has been a sharp fall in the stock price since the last review.

Sr No

Underlying

Symbol

Present Market Lot

Revised Market Lot

1

BIRLASOFT LIMITED

BSOFT

1300

2000

2

DELTA CORP LIMITED

DELTACORP

2300

2800

3

GLENMARK PHARMACEUTICALS LIMITED

GLENMARK

1150

1450

4

GODREJ PROPERTIES LIMITED

GODREJPROP

325

425

5

HINDALCO INDUSTRIES LIMITED

HINDALCO

1075

1400

6

HINDUSTAN COPPER LIMITED

HINDCOPPER

4300

4800

7

INFOSYS LIMITED

INFY

300

400

8

INTELLECT DESIGN ARENA LIMITED

INTELLECT

750

1000

9

LAURUS LABS LIMITED

LAURUSLABS

900

1100

10

METROPOLIS HEALTHCARE LIMITED

METROPOLIS

300

400

11

MPHASIS LIMITED

MPHASIS

175

275

12

MUTHOOT FINANCE LIMITED

MUTHOOTFIN

375

550

13

NATIONAL ALUMINIUM COMPANY LIMITED

NATIONALUM

4250

7500

14

NMDC LIMITED

NMDC

3350

4500

15

PIRAMAL ENTERPRISES LIMITED

PEL

275

550

16

PERSISTENT SYSTEMS LIMITED

PERSISTENT

150

175

17

STEEL AUTHORITY OF INDIA LIMITED

SAIL

6000

8000

18

TATA STEEL LIMITED

TATASTEEL

4250

5500

19

TATA CONSULTANCY SERVICES LIMITED

TCS

150

175

20

VEDANTA LIMITED

VEDL

1550

2000

21

VOLTAS LIMITED

VOLTAS

500

600

22

WIPRO LIMITED

WIPRO

1000

1500

 

The lot size changes above are intended to restore the value of one lot back to the prescribed range by SEBI.

List 3 – Lot sizes revised down, but not as multiple of old lot size

 

Here is a list of companies where the contract lot size has been reduced but not as multiple of the old lot sizes. Normally, the lot sizes are reduced where there has been a rise in the stock price since the last review.

Sr No

Underlying

Symbol

Present Market Lot

Revised Market Lot

1

HINDUSTAN AERONAUTICS LIMITED

HAL

475

300

2

ICICI BANK LIMITED

ICICIBANK

1375

700

3

THE INDIAN HOTELS COMPANY LIMITED

INDHOTEL

4022

2000

4

NAVIN FLUORINE INTERNATIONAL LIMITED

NAVINFLUOR

225

150

5

TRENT LIMITED

TRENT

725

400

 

The lot size changes above are intended to restore the value of one lot back to the prescribed range by SEBI.


List 4 – Lot sizes of contracts kept constant


There are a total of 157 companies where the lot sizes have been maintained constant due to the price change in the stock not being substantial, either ways. The complete list of stock where lot sizes are unchanged can be accessed at the hyperlink below.


https://archives.nseindia.com/content/circulars/FAOP53920.zip

Additional points to note


Here are some additional points to note regarding the lot size changes in List 2 and List 3 above.

 
    • Only the far month contract i.e. January 2023 expiry contracts and beyond will be revised for market lots. Contracts with maturity of November 2022 and December 2022 would continue to have the existing market lots. 

    • The day spread order book will not be available for the combination contract of December 2022 and January 2023 expiry for the stocks in List 2 and List 3.

    • The price considered for the above computation by the exchange is average of the closing price of the underlying for one month period of September 01st to September 30th 2022.


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