F&O Update: Lot sizes for derivatives contracts revised

Blog | Updates

Here’s a heads-up for all traders who deal in futures and options. As you already know, SEBI periodically (every six months) revises the lot sizes for derivative contracts. The latest round of revisions is out, so we thought of giving you a quick update.  

Why the revision?
For those just beginning to learn about derivatives (futures and options), here’s a primer. Unlike stocks which can be bought in units, derivatives contracts require you to buy the underlying asset (could be stocks, indices) in lots. Think of these lot sizes as the lot size of an IPO, but larger. 

The SEBI fixes lot sizes of derivatives contracts such that the contract value is within ₹5 lakhs to ₹10 lakhs. The lot sizes are revised to maintain the contract value in this range in case of a change in the underlying stock/scrip’s current market price. To read the SEBI circular, click here.  

The revision

With the basics out of the way, here’s a quick lowdown on how the lot sizes have changed and when the revisions will be effective. 

Sr. No. Underlying stocks whose derivative lot size shall be Number of scrips changed Effective date
1 Revised downwards 40 30 April 2021 (for May 2021 & later expiries)
2 Revised upwards 0 -
3 Unchanged 114 -
4 Revised downwards but new lot size is not a multiple of old lot size 2 30 April 2021 (for July 2021 & later expiries)

*For the fourth category of revisions, only the far month contracts (i.e. July 2021 expiry contracts and subsequent ones) will be revised for market lots. Contracts with a maturity of May 2021 and June 2021 will continue to have the existing market lots.

For all calculations, the average closing price of the underlying scrips has been taken from 1 to 31 March 2021. The updates come into effect from 30 April 2021. You can read the official circulars and annexures on the revisions here.  

Further, to help you keep track of the changes, we've listed the revised lot sizes based on the latest update.

Sr. No. Underlying Present lot size Revised lot size
1 Adani Enterprises 2,000 1,000
2 Adani Ports and SEZ 2,500 1,250
3 Apollo Hospitals 500 250
4 26 Apollo Tyres 5,000 2,500
5 Ashok Leyland 9,000 4,500
6 Bajaj Finance 250 125
7 Bharat Electronics 7,600 3,800
8 BHEL 21,000 10,500
9 Cholamandalam Investment and Finance Company 2,500 1,250
10 Cipla 1,300 650
11 Colgate Palmolive 700 350
12 Cummins India 1,200 600
13 Grasim Industries 950 475
14 Havells India 1,000 500
15 Hindalco 4,300 2,150
16 IDFC First Bank 19,000 9,500
17 Jindal Steel and Power 5,000 2,500
18 JSW Steel 2,700 1,350
19 Mahindra & Mahindra 1,400 700
20 Max Finance 1,300 650
21 Mindtree 800 400
22 Motherson Sumi 1,400 700
23 Info Edge 250 125
24 Piramal Enterprises 550 275
25 SAIL 19,000 9,500
26 SBI 3,000 1,500
27 Shree Cement 50 25
28 Siemens 550 275
29 Shriram Transport Finance 800 400
30 Tata Chemicals 2,000 1,000
31 Tata Motors 5,700 2,850
32 Tata Power 13,500 6,750
33 Tata Steel 1,700 850
34 Tech Mahindra 1,200 600
35 Titan Company 750 375
36 Torrent Power 3,000 1,500
37 Ultratech Cement 200 100
38 Vedanta 6,200 3,100
39 Voltas 1,000 500
40 Wipro 3,200 1,600

Here are the scrips that were revised downwards, but where the new lot size is not a multiple of old lot size.

Sr. No. Underlying Present lot size Revised lot size
1 Bajaj Finserv 125 75
2 Coforge 375 200

Happy trading!

Disclaimer
The information provided is for educational purpose and should not be construed as investment advice by RKSV group. 
Investors should consult their advisor before making any investment decision. For more details, please visit www.upstox.com

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