SEBI’s new guidelines can increase lot size

hello friends, in today’s blog, we see SEBI’s new guidelines can increase lot size by 5 times. so there is huge confusion regarding these guidelines and lots of rumours about a 30% tax on Options trading. so traders are really confused, we do options trading or do any other trading like stocks trading.

so let’s see what will happen in the Indin market in future.

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SEBI’s new guidelines can increase lot size

The lot size for Nifty and BankNifty index futures and options has recently been revised by the National Stock Exchange of India (NSE).

Effective from April 26, 2024, the lot size for Nifty 50 contracts has been halved from 50 to 25. However, the lot size for BankNifty contracts will remain unchanged at 15.

These changes are part of the periodic review by NSE to ensure better liquidity and manageability for traders. The revision aims to make trading in these indices more accessible, especially for retail investors, by lowering the capital requirement to enter positions.

Key Points of the Revision:
1. Nifty 50: Lot size reduced from 50 to 25.
2. BankNifty: Lot size remains at 15.
3. Effective Date: April 26, 2024.
4. Application: The revised lot sizes will be applicable for new contracts generated from the end of the day of April 25, 2024, and for trading from April 26, 2024, onwards

These changes aim to improve market participation and provide better opportunities for risk management and liquidity for traders in the Indian derivatives market.

This scenario happened 2 months back, so recently new guidelines have come, so they are trying to increase our lot sizes so those who are gamblers will be wiped out in the stock market.

Because of this scenario Options buyers ( mostly retail traders doing the options buying ) have to bring a lot of money to buy the nifty, bank nifty lot.

Nowadays only 5,000 rupees are enough to buy a single lot in nifty and bank nifty but now we need more than 20,000 rupees.

The following points help you to get the right scenario of recent guideline changes

Key Points of the Revision:

1. Nifty 50: Lot size increased from 25 to 100.
2. BankNifty: Lot size increased from 15 to 40.

3. Finnifty:- Lot Size Increased from 40 to 100.

so those are options buyers who need more money to buy options. Previous 10,000 or 15,000 is enough for buying but now we need 25,000 to 40,000 rupees for the average options buyer.

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Laxman Sonale

I am Laxman Sonale, I love reading books. My professional background is in biotechnology and now I am doing my m.sc in biotechnology, but I love the stock market and Common Sense and how people make lots of mistakes in financial life so I write this blog to help them people and become financially aware. so this is my mission and I need your help friends, to reach out to those, that don't know about the world of finance work, and how people get poor and rich get richer. So if you want to be a Smart guy in life, then you should have to learn about finance, whatever I know, I am trying to say in simple language if something is not clear to you, then leave the comment, I bring the answer. so thank you for reading about me.