GENERAL MANAGER
DERIVATIVES AND NEW PRODUCTS DEPARTMENT
SEBI/DNPD/Cir- 50/2010
January 8, 2010
To
Managing Director / Chief Executive Officer
Stock Exchanges / Equity Derivatives Segment of Stock Exchanges
and their Clearing Houses/Corporations
Dear Sir,
SUB: Standardized lot size for derivative contracts on individual securities
In consultation with Stock Exchanges, it has been decided to standardize the lot
size for derivative contracts on individual securities as under:
Price Band (Rs.) Contract Size
Lot Size
(No. of units of underlying) Value (Rs. lakh)
≥1601 125 ≥ 2
801 - 1600 250
401 - 800 500
201 - 400 1,000
101 - 200 2,000
51 - 100 4,000
25 - 50 8,000
< 25 A multiple of 1000
≥ 2 ≤ 4
Explanation: The lot size for an underlying with a price of Rs. 250, i.e., in the
price band of Rs. 201-400, shall be 1000 units.
2. The Stock Exchanges shall review the lot size once in every 6 months based
on the average of the closing price of the underlying for last one month and
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wherever warranted, revise the lot size by giving an advance notice of atleast 2
weeks to the market. If the revised lot size is higher than the existing one, it will
be effective for only new contracts. In case of corporate action, the revision in lot
size of existing contracts shall be carried out as per SEBI circular
SMDRP/DC/CIR-15/02 dated December 18, 2002.
3. The Stock Exchanges shall ensure that the lot size is same for an
underlying traded across Exchanges.
4. This Circular is issued in exercise of the powers conferred under Section
11 (1) of the Securities and Exchange Board of India Act 1992, read with Section
10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market and shall come into effect from March 31, 2010.
5. This Circular supersedes SEBI circular SEBI/DNPD/Cir-20/2004/02/23 dated
February 23, 2004.
6. This Circular is available on SEBI website at www.sebi.gov.in., under the
category Derivatives- Circulars.
Yours faithfully,
Sujit Prasad