NSE Revises Market Lot Sizes for BANKNIFTY and MIDCPNIFTY Derivatives from April 25, 2025

The National Stock Exchange of India (NSE) has announced changes in the market lot sizes for derivative contracts on select indices, impacting traders and investors dealing in BANKNIFTY and MIDCPNIFTY futures and options. These changes will be effective from April 25, 2025.

Revised Market Lot Sizes

BANKNIFTY: Increased from 30 to 35

MIDCPNIFTY: Increased from 120 to 140

However, the lot sizes for Nifty 50, Nifty Financial Services, and Nifty Next 50 will remain unchanged, according to the NSE circular dated March 28.

Applicability of New Lot Sizes

The revised lot sizes will apply only to new contracts starting with the July 2025 expiry.

Existing contracts expiring in April, May, and June 2025 will retain their current lot sizes.

All quarterly derivative contracts introduced after April 25, 2025, will reflect the updated lot sizes.

To ensure a smooth transition, the day spread order book will be disabled for the May–July 2025 and June–July 2025 combination contracts.

Understanding Derivative Lot Sizes

Derivatives, such as futures and options (F&O), derive their value from an underlying asset like an index, stock, or commodity.
A lot size refers to the minimum quantity that must be traded in one contract.

Lot sizes directly impact margin requirements and trader exposure.

As derivatives are leveraged instruments, only a fraction of the contract value needs to be paid upfront.

The NSE’s move is expected to align trading volumes and manage volatility more efficiently, especially in fast-growing segments like BANKNIFTY and MIDCPNIFTY.

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