India’s stock market is one of the largest globally. In 2024, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) had market caps of $5,340,000 million and $5,245,474 million, respectively. Both NSE and BSE issued circulars revising their futures and options (F&O) lot sizes for index derivatives to maintain their edge in evolving market conditions.
If you trade in index derivatives, you’ll know how lot size plays an important role in determining your capital requirements and potential risks. In simple terms, lot size is the fixed number of contracts in a stock or index F&O trade. Any changes in these sizes will directly impact the market and investors.
The official announcement for the lot size revision was made in October 2024 and follows the new regulations from the Securities and Exchange Board of India (SEBI). With these modifications, the Indian stock market aims to maintain liquidity, manage volatility, and align with global markets.
In this post, let’s find out more about the evolving regulations and how they affect the trade.
First Published: Apr 03, 2025, 16:20
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