Based on recent information, particularly regarding changes implemented by SEBI (Securities and Exchange Board of India) and the subsequent actions by the BSE (Bombay Stock Exchange), here's what you need to know about Sensex lot sizes:
* **Increased Lot Sizes:**
* The BSE Sensex lot size has been increased from 10 to 20.
* This change is part of a broader move to increase lot sizes for index derivatives to ensure a minimum contract value.
* **Implementation:**
* These changes came into effect for new contracts introduced after November 20, 2024.
* Existing contracts maintain their original lot sizes until their expiry.
* Therefore there has been a transition period, where older contracts with the older lot size, and newer contracts with the new lot size, have been trading at the same time.
* **Rationale:**
* The changes aim to curb speculative trading and enhance market stability.
* The changes also bring the contract values in line with SEBI regulations.
In essence, if you're trading new Sensex derivative contracts, you'll be dealing with a lot size of 20.
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