NSE Revises Market Lot Sizes for Major Index Derivatives Effective January 2026

Mumbai, 28th November 2025: The National Stock Exchange (NSE) has issued a circular announcing a significant revision in the market lot sizes of key index derivative contracts. The changes, which take effect from the January 2026 series, will come into force after the expiry of the December 2025 contracts. The exchange stated that the revised structure aligns with current trading volumes and aims to enhance risk management efficiency across derivative segments.

Revised Lot Structure Across Key Indexes

NSE confirmed that the market lot sizes for four major index derivatives will be reduced. Lot size of Nifty 50 contracts would be revised from 75 to 65; for Nifty Bank, it would be reduced from 35 to 30. Further, Nifty Financial Services would be reduced from 65 to 60, and Nifty Midcap Select would be reduced from 140 to 120. The exchange explained that the lot size of Nifty Next 50 would remain unchanged. These moves have been brought in to ensure smoother participation and better manageability of contracts amidst fluctuating market conditions.

Transition Timeline for Weekly, Monthly, and Long-Term Contracts

NSE has laid out a detailed implementation timeline for the shift to the new lot sizes.

• Weekly contracts: Current lot sizes will remain applicable until the expiry on 23 December 2025. The revised lot sizes will be effective from the expiry of the 6 January 2026 weekly contract.
• Monthly contracts: Existing lot sizes will continue until the 30 December 2025 expiry, after which the revised sizes will apply from the 27 January 2026 expiry.
• Quarterly and half-yearly contracts: Lot sizes will be updated following the 30 December 2025 expiry. The March 2026 contract, previously categorised as a quarterly contract, will be treated as a far-month contract after the December 2025 monthly expiry.

This phased approach aims to ensure a seamless transition and prevent any disruption to open positions in the derivatives market.

Implications for Traders

Revised lot sizes are anticipated to improve risk management, making it easier for traders to participate. Traders will need to modify their trading strategies, manage their rollover positions, and adjust their exposure to match the new lot sizes. All new contracts offered after the cut-off date will automatically reflect the new lot sizes.

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