The National Stock Exchange of India (NSE) has rolled out an important structural change for derivatives traders. On October 3, 2025, NSE issued Circular No. NSE/FAOP/70616, announcing a revision in market lot sizes for key index derivative contracts.

The update, effective from October 28, 2025 (end of day), follows the SEBI directive mandating periodic recalibration of lot sizes to maintain the notional value of each contract between ₹5 lakh and ₹10 lakh.

In simple terms, the number of units in each derivative lot is being reduced slightly across major indices to reflect their current market levels – ensuring the contract value stays stable despite index rallies over recent quarters.

The Revised Lot Sizes:

Here’s a snapshot of what’s changing:

Index	Symbol	Current Lot Size	Revised Lot Size
Nifty 50	NIFTY	75	65
Nifty Bank	BANKNIFTY	35	30
Nifty Financial Services	FINNIFTY	65	60
Nifty Mid Select	MIDCPNIFTY	140	120
Nifty Next 50	NIFTYNXT50	25	Unchanged

This means, for example, a single Nifty futures contract that earlier represented 75 units will now represent 65 units.

Why the Lot Size Revision Was Needed?

Every derivative contract in India is designed to have a notional value that falls within a fixed range – typically ₹5 lakh to ₹10 lakh per lot. As index levels climb, the value of each contract increases too.
If left unchecked, that could make participation expensive for smaller traders.

To keep the derivative market accessible and liquid, NSE periodically adjusts lot sizes so that contract values remain consistent.

For instance:

Nifty 50 has been trading near record highs, pushing contract values beyond the upper threshold. Reducing the lot size to 65 brings it back within range.
Bank Nifty and FinNifty also saw similar recalibrations for the same reason.

These adjustments are not new – NSE and SEBI conduct such reviews every few quarters to balance contract sizes with index price movements.

Effective Dates and Expiry Schedule:

The circular lays out a phased implementation plan to ensure a smooth transition:

Derivative Type	Expiration Cycle	Last Expiry with Old Lot	First Expiry with Revised Lot
NIFTY	Weekly	23-Dec-2025	06-Jan-2026
NIFTY	Monthly	30-Dec-2025	27-Jan-2026
BANKNIFTY / FINNIFTY / MIDCPNIFTY	Monthly	30-Dec-2025	27-Jan-2026
NIFTY / BANKNIFTY	Quarterly & Half-Yearly	31-Mar-2026*	Revised from 30-Dec-2025 (EOD)

*Note: The March 2026 contract, currently treated as a quarterly expiry, will automatically transition to a far-month contract after the December 2025 monthly expiry.

So, for traders holding long-dated positions, the new lot sizes will come into force after December 30, 2025 (EOD).

What This Means for Traders:

Though it sounds technical, this revision has practical trading implications:

Lower Margins per Contract
Smaller lot sizes mean a lower notional contract value, translating to reduced margin requirements. This can increase participation, particularly from retail traders.
Simpler Position Sizing
The reduction makes it easier to manage exposure. For example, instead of being locked into a 75-lot Nifty contract, traders can fine-tune exposure with 65-lot contracts.
Portfolio Adjustments Ahead of Expiry
Traders holding December and January positions need to plan ahead for the rollover – ensure your systems, hedges, and spreadsheets reflect the new lot counts.
Stable Market Value Compliance
SEBI’s periodic review keeps derivatives consistent with market movement, avoiding oversized contracts that could distort liquidity or accessibility.

Download NOVO App!

Invest in Zero-commission Direct Mutual funds, IPO, Sovereign Gold bonds, Government bills, and Corporate bonds.