Bank Nifty lot size will be reduced to 15 starting from the monthly expiry of July 2023 as announced by NSE

    The lot size of Bank nifty will be reduced to 15 starting from the monthly expiry of July 2023 as announced by NSE.

From the monthly expiry of July 2023, NSE will be decreasing the lot size of Bank Nifty to 15, while leaving the market lots of derivatives contracts on indices such as Nifty 50, Nifty Financial Services, and Nifty Midcap Select unchanged at 50, 45, and 75, respectively. The circular released by NSE regarding this change will come into effect on April 28, 2023.

 

Bank nifty lot size will be reduced to 15 starting from the
month of July 2023

Time of Application:

1. NSE will revise the market lots only for the far month contract, which is the July 2023 expiry contract. The contracts with maturity of April 2023, May 2023, and June 2023 will retain their existing market lots, whereas all the subsequent contracts starting from the July 2023 monthly expiry will have revised market lots.

2. The combination contract of May 2023 July 2023 and June 2023 July 2023 expiries will not have the day spread order book available.

3. NSE has decided to revise the market lots for contracts with August 2023 Weekly expiry and all subsequent contracts. 4.After the expiry of June 2023 contracts. Starting from June 30, 2023, the lot size of all long-term options contracts of BANKNIFTY with an expiry greater than 3 months will be reduced from 25 to 15.
4. NSE's announcement of reducing the lot size of Bank Nifty and revising the market lots for various contracts comes shortly after the government increased securities transaction tax (STT) on F&O traders.
5. The Finance Bill 2023 has increased the STT on options to 0.0625% from 0.05% and on futures contracts to 0.0125% from 0.01%.

STT has been increased

Consequently, the Securities Transaction Tax (STT) applicable to futures segment traders has been raised to Rs 1,250 on a turnover of Rs 1 crore, as opposed to the previous charge. The Securities Transaction Tax (STT) for traders dealing in futures segment has been raised to Rs 1,250 on a turnover of Rs 1 crore, as opposed to the previous charge of Rs 1,000.

On the other hand, for traders involved in the options segment, the STT has been increased to Rs 6,250 on a turnover of Rs 1 crore, which is higher than the earlier levy of Rs 5,000.