National Stock Exchange on Friday announced reduction in Bank Nifty’s lot size to 15 from 25 from July 2023 monthly expiry. However, NSE left other market lots of derivatives contracts on indices unchanged, namely Nifty 50, Nifty Financial Services and Nifty Midcap Select, at 50, 45 and 75, respectively. NSE said its circular would come into effect from April 28, 2023.┬а
The revised market lot will be applicable as follows:┬а
1. Only the far month contract i.e. July 2023 expiry contracts will be revised for market lots. Contracts with maturity of April 2023, May 2023 and June 2023 would continue to have the existing market lots. All subsequent contracts (i.e. July 2023 monthly expiry and beyond) will have revised market lots.
2. The day spread order book will not be available for the combination contract of May 2023 July 2023 and June 2023 July 2023 expiries.
3. Contracts with August 2023 Weekly expiry and beyond will have revised market lots.
4. The lot size of all existing BANKNIFTY long term options contracts (having expiry greater than 3 months) shall be revised from 25 to 15 after expiry of June 2023 contracts (i.e. June 30, 2023).
NSE’s move comes days after government increased securities transaction tax on F&O traders.┬а
In the Finance Bill 2023, the STT on options has been increased to 0.0625 per cent from 0.05 per cent and on futures contracts to 0.0125 from 0.01 per cent.
Traders in the futures segment will now have to pay STT of Rs 1,250 on Rs 1 crore of turnover against the earlier levy of Rs 1,000, while traders in the options segment will now have to pay STT of Rs 6,250 on Rs 1 crore of turnover against the earlier levy of Rs 5,000.
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