MUMBAI: The National Stock Exchange (NSE) has announced a significant revision in market lot sizes for several key index derivatives, a move that will reduce the contract value and potentially enhance retail participation in the derivatives segment.
In a circular issued on Wednesday, the exchange stated that the revised lot sizes will be effective from the December 2025 expiry cycle. The changes will impact four major indices while keeping the Nifty Next 50 contract size unchanged.
Revised Contract Specifications
The exchange has approved the following reductions in market lot sizes:
Key Takeaway: Lot sizes reduced across all major indices → Lower margin requirement → Greater retail participation expected!
Notably, the Nifty Next 50 derivative will maintain its existing lot size of 25 units.
Phased Implementation Schedule
The transition to new lot sizes will follow a detailed calendar:
- All existing contracts with current lot sizes will expire on December 30, 2025.
- Weekly contracts with current specifications will see their final expiry on December 23, 2025.
- The first weekly contracts with revised lot sizes will be introduced for expiry on January 6, 2026.
- Monthly contracts with updated specifications will commence with the January 27, 2026 expiry series.
Impact on Contract Values and Market Participation
The reduction in lot sizes will directly decrease the contract value for traders. For instance, with Nifty at approximately 26,000 levels, the Nifty 50 contract value will decrease from nearly ₹19.5 lakh to around ₹16.9 lakh, reducing margin requirements significantly.
Market experts suggest this strategic move could improve liquidity and accessibility, particularly for retail investors who have found rising index levels a barrier to entry in the derivatives market. The revision aligns with SEBI’s broader objective of maintaining optimal contract values amid rising underlying index values.
Traders are advised to review their positions and adjust their risk management strategies ahead of the transition period beginning December 2025.
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