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#1
7th February 2007, 07:07 AM
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Revision of market lots
Here is a circular issued by the NSE to this effect.
High time and most welcome. Could be a result of the discussions here, more power to traderji. NATIONAL STOCK EXCHANGE OF INDIA LIMITED FUTURES AND OPTIONS SEGMENT CIRCULAR Circular No.: NSE/F&O/010/2007 Date: February 6, 2007 Download No. NSE/FAOP/8483 Dear Members, Subject: Revision of Market Lot of Derivative Contracts Exchange reviews on a periodic basis the contract size/value of derivative contracts based on prescribed minimum value of INR 200,000 as per SEBI circular no. SEBI/DNPD/CIR- 20/2004/02/ 23 dated February 23, 2004. It is proposed to carry out revision of market lots for derivatives contract as given below: Sr No Underlying whose Derivative contract size /value is Revising methodology Effective date Annexure Number for list of underlying 1 Higher than INR 800,000 Dividing existing lot by 4 February 23, 2007 (for all contracts) 1 2 Higher than INR 400,000 Dividing existing lot by 2 February 23, 2007 (for all contracts) 2 3 Higher than INR 800,000 but lot size not exactly divisible by 4 Dividing existing lot by 4 & rounding off to nearest integer. February 23, 2007 (for May 2007 & later expiries) 3 4 Higher than INR 400,000 but lot size not exactly divisible by 2 Dividing existing lot by 2 & rounding off to nearest integer. February 23, 2007 (for May 2007 & later expiries) 4 5 Lower than INR 200,000 Multiplying existing lot by 2 February 23, 2007 (for May 2007 & later expiries) 5 To avoid operational complexities, in cases 3, 4 & 5 above, only the far month contract i.e. May 2007 expiry contracts will be revised for market lots. Contracts with maturity of March 2007 and April 2007 would continue to have the existing market lots. All subsequent contracts (i.e., May 2007 expiry and beyond) will have revised market lots. For any clarifications, members are advised to contact the following officials: Mr. Arvind Goyal, Mr. Sachin Dhar & Ms. Shalini Rebeiro at 26598151 or 26598152 Yours faithfully, For National Stock Exchange of India Ltd. T S Jagadharini Vice President Annexure-1 List of underlying in which market lot is being revised downwards: Sr No Underlying Symbol Present Market Lot Revised market Lot 1 IFCI Ltd IFCI 31500 7875 Annexure-2 List of underlying in which market lot is being revised downwards: Sr No Underlying Symbol Present Market Lot Revised market Lot 1 NSE 50 Index NIFTY 100 50 2 BANK Nifty Index BANKNIFTY 100 50 3 Allahabad Bank ALBK 4900 2450 4 Alok Industries Ltd ALOKTEXT 6700 3350 5 Andhra Bank Ltd ANDHRABANK 4600 2300 6 Ashok Leyland Ltd ASHOKLEY 9550 4775 7 Bank Of India BANKINDIA 3800 1900 8 Bharti Airtel Limited BHARTIARTL 1000 500 9 Century Textiles Ltd CENTURYTEX 850 425 10 CESC Ltd CESC 1100 550 11 Cummins India Ltd CUMMINSIND 1900 950 12 Escorts India Ltd ESCORTS 4800 2400 13 Gail ( India ) Ltd GAIL 1500 750 14 HCL Technologies Ltd HCLTECH 650 325 15 HDFC Ltd HDFC 300 150 16 HDFC Bank Ltd HDFCBANK 400 200 17 ICICI Bank Ltd. ICICIBANK 700 350 18 Indus Dev Bank Of Ind Ltd IDBI 4800 2400 19 Infra. Dev. Fin. Co. Ltd IDFC 5900 2950 20 I-Flex Solutions Limited I-FLEX 300 150 21 Indusind Bank Limited INDUSINDBK 7700 3850 22 Infosys Technologies Ltd INFOSYSTCH 200 100 23 IVRCL Infrast & Proj Ltd. IVRCLINFRA 1000 500 24 J & K Bank Ltd. J&KBANK 600 300 25 Jindal Steel & Power Ltd JINDALSTEL 250 125 26 Jaiprakash Hydropow Ltd. JPHYDRO 12500 6250 27 Jindal Stainless Ltd JSTAINLESS 4000 2000 28 Karnataka Bank Limited KTKBANK 2500 1250 29 Maharashtra Seamless Ltd MAHSEAMLES 1200 600 30 Mphasis Limited MPHASIS 1600 800 31 Nagarjuna Fertilizers Ltd NAGARFERT 28000 14000 32 NDTV Ltd NDTV 2200 1100 33 Nicolas Piramal India Ltd NICOLASPIR 2090 1045 34 NTPC Ltd NTPC 3250 1625 35 Oil And Natural Gas Corp. ONGC 450 225 36 Punjab National Bank PNB 1200 600 37 Polaris Software Lab Ltd POLARIS 2800 1400 38 Reliance Industries Ltd RELIANCE 300 150 39 State Bank Of India SBIN 500 250 40 Sun Pharmaceuticals Ind. SUNPHARMA 450 225 41 Sun TV Limited SUNTV 250 125 42 Syndicate Bank SYNDIBANK 7600 3800 43 Tata Power Co Ltd TATAPOWER 800 400 44 Union Bank Of India UNIONBANK 4200 2100 45 UTI Bank Ltd UTIBANK 900 450 Annexure-3 List of underlying in which market lot is being revised downward and rounded off to nearest integer: Sr No Underlying Symbol Present Market Lot Revised market Lot 1 Divis Lab Ltd DIVISLAB 250 62 Annexure-4 List of underlying in which market lot is being revised downward and rounded off to nearest integer: Sr No Underlying Symbol Present Market Lot Revised market Lot 1 Grasim Industries Ltd GRASIM 175 88 2 Mahindra & Mahindra Ltd M&M 625 312 3 Siemens Ltd SIEMENS 375 188 4 Sterlite Inds (Ind ) Ltd STER 875 438 5 Titan Industries Ltd TITAN 411 206 Annexure-5 List of underlying in which market lot is being revised upwards: Sr No Underlying Symbol Present Market Lot Revised market Lot 1 Bajaj Hindustan Ltd BAJAJHIND 950 1900 2 Balrampur Chini Mills Ltd BALRAMCHIN 2400 4800 3 Cairn India Limited CAIRN 1250 2500 4 Chennai Petroleum Corp Lt CHENNPETRO 900 1800 5 Colgate Palmolive (I) Ltd COLGATE 525 1050 6 Gateway Distriparks Ltd. GDL 1000 2000 7 The GeShpg.Ltd GESHIP 600 1200 8 ITC Ltd ITC 1125 2250 9 Shree Renuka Sugars Ltd RENUKA 500 1000 10 Tata Tea Ltd TATATEA 275 550 11 Triveni Engg. & Inds. Ltd TRIVENI 3850 7700 12 Voltas Ltd VOLTAS 1800 3600 
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#3
7th February 2007, 07:59 AM
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Re: Revision of market lots
Nice. This should increase the interest in the F&O segment
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#4
7th February 2007, 04:50 PM
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Re: Revision of market lots
After all, the babus made it!! It reminds me of a line from Hard Traget - 'The wheels turn slowly here, but they do turn!'
ss 
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#5
7th February 2007, 07:12 PM
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Re: Revision of market lots
My thread on this subject initiated yesterday night seems to have gone unnoticed. Never mind about it. I too wanted a discussion on this. I am glad that at least this thread has caught attention of members. Please ponder on these points:-
1. What will happen if the brokerage per lot remains same? To my knowledge some trading houses are charging a fixed brokerage for one lot of Nifty and other future contracts. If they do not cut down the brokerage, what will be the position of the trader especially the day trader and the scalper? To quote an example, if a broker charges Rs. 300/- per Nifty lot, now, a favourable movement of four points will take care of borkerage and taxes etc. If the lot size is reduced to 50, Nifty will have to move eight points just to cover costs. 2. Will it make the market more volatile? For two reasons, one to cover costs by scalpers and day traders. Second, I persume many small retail guys may venture out to F&O section under the presumption that lot size reduction is working to their advantage. Any guess on these points? Regards R. S. Iyer
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#6
8th February 2007, 01:07 AM
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Re: Revision of market lots
Quote:
It may happen that the current charges would stay in place per lot basis, So all the brokerage houses, which charges on per lot basis, would be charging double. However I think this situation would make these brokerage houses uncompetitive, which would then force them to reduce the per lot fixed charges. It would surely make market more volatile, But It may not attract a big % of general public. To attract them, the derivative lot sizes needs to be lower down to 50000-100000Rs range.
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#7
8th February 2007, 03:57 PM
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Re: Revision of market lots
hey nothing great about it...they do it every year...tomorrow if nifty falls below 3800 or so, it will be back to 100
and as for RSI, if u r concerned with brokerage, u have to trade bigger lots e.g hpcl was 650, sometime back it became 1300... rgds.
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#8
8th February 2007, 04:14 PM
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Re: Revision of market lots
to add on...it works both ways...the opposite effect is true for contracts that have been doubled...and if u were in bear mkt...more contracts would have doubled than halved.
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