As we know, SEBI updates the lot sizes of derivative contracts every six months. Here, let’s talk about the latest updation. For beginners, here is an introduction to what we are talking about. Generally, you have to buy the underlying assets in lots for derivative contracts. This is in contrast with the stocks which are bought in units. SEBI arranges the lot sizes in such a way that the contract value stays between ₹5 lakhs and ₹10 lakhs. Significantly, SEBI updates the lot sizes in order to keep the contract value in range in case of any change in the underlying stock’s present market conditions.
Accordingly, underlying stocks whose lot sizes shall be updates downwards, now have 40 number of stocks changed. The effective date is April 30, 2021( for May 2021 & later expiries). No scrips are changed for those updated upwards. Stocks with unchanged lot size, now have 114 scrips changed. There is another section of updated downward, but the new lot size is not a multiple of old. These have 2 scrips changed. The effective date is April 30, 2021(for July 2021 and later expiries). Contracts having maturity of May & June 2021 will continue with the existing lots. The changes take effect from April 30, 2021.
Based on the latest update, revised lot sizes are:
|Sl. No||Underlying stocks||Current lot size||Updated lot size|
|2||Adani Ports and SEZ||2500||1250|
|4||26 Apollo Tyres||5000||2500|
|9||Cholamandalam Investment and Finance Company||2500||1250|
|16||IDFC First Bank||19000||9500|
|17||Jindal Steel and Power||5000||2500|
|19||Mahindra & Mahindra||1400||700|
|29||Shriram Transport Finance||800||400|
|31||Tata Motors (—-)||5700||2850|
Updated downwards, but the new lot size is not a multiple of old:
You can now continue trading with these updated sizes.