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