The Bombay Stock Exchange (BSE ) has said that
the lot size for derivatives contracts in the equity futures & options (F
&O) segment would be fixed in such a manner that the contract value on the
day of review (October 30,2015) is within Rs. 5 lakhs and Rs. 10 lakhs.
In a circular on July Tuesday, BSE said the
market lot for stock derivatives would be in multiples of 25 if the market lot
is 50 and above. However, if the contract value of the stock derivatives at the
minimum lot size of 50 is greater than Rs 10 lakhs, then lot size shall be
fixed in a multiple of 5, provided the lot size is over 10.
The increase in lot size of equity derivatives
follows SEBI’s directive on July 13 to increase the lot size to Rs 5 lakh with
effect from October 30, 2015 – after the expiry of October contracts.
Lot size of index derivatives would be 10 and above
and in multiples of five. Lot sizes would be standardised every six months and
would be based on the average of the closing price of the underlying (stock or
index) for the last one month. An advance notice of at least two weeks would be
given to the market before revision, BSE said.
If the lot size revision is higher than the
existing one or lower but not in multiple of the existing one then it will be
effective only for new contracts.
For underlying traded across exchanges, review of
market lot of equity derivatives contracts has to be carried out by stock
exchanges in consultation with each other.
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