Nifty Bank lot size increases to 35 with effect from July 31 for monthly expiries

The National Stock Exchange (NSE) had earlier revised the lot sizes for derivative contracts on Nifty Bank, increasing the lot size to 35, from an earlier 30, with effect from the July 2025 monthly expiry.

Along with Nifty Bank, the NSE had also revised the lot size for Nifty Midcap Select, which will rise from 120 to 140, as per the circular dated March 28.

These changes will apply to all new contracts generated from April 25, 2025, onwards. Contracts with earlier expiries, including April 24, May 29, and June 26, 2025, continued to trade with the old lot sizes.

The NSE circular clarified:

• For Bank Nifty and Nifty Midcap Select, the first monthly expiry to reflect the revised lot sizes will be July 31, 2025.
  
• All quarterly contracts available for trading from April 25, 2025, will carry the updated lot sizes.
  

The day spread order book will not be available for the May–July and June–July 2025 combination contracts.

This revision follows the SEBI circular issued in December 2024, and forms part of SEBI’s periodic review mechanism to ensure that derivative contract values remain within the prescribed notional range.

For the latest revision, the average closing prices during March 2025 were used to calculate the new lot sizes.

Notably, the lot sizes for Nifty 50 (75), Nifty Financial Services (65), and Nifty Next 50 (25) remain unchanged.

Also read: IEX shares crash 28%, hit 52-week low after CERC nod for market coupling

Background

The changes align with broader efforts by SEBI and NSE to enhance risk management and ensure contract sizes remain within regulatory thresholds. This is not the first instance of such an adjustment—in October 2024, NSE had increased lot sizes across five major index derivatives after SEBI raised the minimum contract size to Rs 15 lakh. At the time, Nifty 50’s lot size tripled from 25 to 75, and Bank Nifty’s doubled from 15 to 30.

Additionally, in March 2025, SEBI proposed limiting expiries of all equity derivatives to either Tuesday or Thursday to ensure spacing across exchanges and avoid bunching of settlements.

These changes also come alongside a previously announced shift in F&O expiry days to Monday, effective April 4, 2025, for indices such as Nifty, Bank Nifty, FinNifty, Nifty Next50, and Nifty Midcap Select. Under SEBI’s consultation paper, exchanges will now require prior regulatory approval for modifying contract expiries or settlement days.

The revised lot sizes are aimed at maintaining efficient risk exposure, improving regulatory compliance, and supporting market stability.

Also read: IEX shares plunge 26% to 52-week low as market coupling gets go-ahead. What should investors do?

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