1. Stock Exchange Board of India (SEBI) at times take arbitrary decisions which is not in the interest of retail investors. They have increased the lot size of number of stock future contracts which can have disastrous effect for the retail investor. However this decision will not have any impact for institutional traders.
2. By virtue of increasing the lot size logic being given is that the rates have fallen significantly; however same do not hold true for Nifty and Mini Nifty. A decision with logic should have had been enforced across the board. A lower lot size enables a retail investor to participate in Futures and Options market with less margin requirement which means that one can participate in derivatives market and can still make money with small margin amount. If some body has deep pockets than they will buy more contracts. Thus as a suggestion to SEBI lot size should be Rs 1 Lakh to enable across the board participation in derivatives market in India.
Instrument | Previous Lot Size | New Lot Size |
Nifty | 50 | 50 |
Reliance | 75 | 300 |
Bank Nifty | 25 | 50 |
ICICI Bank | 175 | 700 |
SBI | 132 | 264 |
Mini Nifty | 20 | 20 |
Reliance Capital | 138 | 552 |
Infosys | 200 | 200 |
HDFC | 75 | 150 |
DLF | 400 | 1600 |
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