What is Nifty Lot Size? Current Limits & New Rules (Nov 2025)

This article covers the critical updates to Nifty lot size and F&O regulations effective November 2025. We analyze the shift to higher lot sizes (Nifty at 75, Bank Nifty at 30) driven by SEBI’s new ₹15 Lakh minimum contract value rule. The guide explains the discontinuation of Bank Nifty weekly contracts, the revised Tuesday/Thursday expiry schedule, and the impact of increased STT rates (0.1% on options) on your trading capital. You will find a complete breakdown of current lot sizes for all major indices, including Sensex and FinNifty, along with a strategic action plan for adapting to these high-value contracts.

In the high-stakes world of Indian derivatives, “lot size” isn’t just a number—it’s the gatekeeper of your capital. If you traded F&O in 2023, you might remember buying a Nifty contract for roughly ₹5-7 lakhs in notional value. Fast forward to November 2025, and the game has changed entirely. With SEBI’s mandate to curb retail speculation, the entry barrier has tripled. Today, understanding what is Nifty lot size means grappling with a minimum contract value of ₹15 lakhs. This shift doesn’t just affect how much margin you need; it fundamentally alters your risk management, position sizing, and profit potential.

What is Lot Size in Options Trading?

In the derivatives market, you cannot buy or sell indices like Nifty 50 or individual stocks in single units. You must trade them in bundles, known as lots. The lot size is the fixed number of units contained in one contract.

Think of it like buying eggs. You generally don’t buy a single egg; you buy a carton of 6 or 12. Similarly, on the NSE, you buy a “carton” of Nifty units.

For November 2025, the Nifty 50 lot size is 75 units. This means if you buy 1 lot of Nifty Futures at 24,000, you are effectively controlling a position worth:

24,000 (Index Price) × 75 (Lot Size) = ₹18,00,000 (Contract Value)

This is significantly higher than the ₹5-10 lakh contract values seen in previous years. The lot size acts as a multiplier for your profits and losses. A 100-point move in Nifty doesn’t mean you make ₹100; it means you make ₹7,500 (100 × 75).

Current Lot Sizes (November 2025)

Note: Contract values fluctuate with market price. Bank Nifty and other indices now only have Monthly contracts as per SEBI’s “One Exchange, One Weekly” rule implemented in late 2024.

How are Lot Sizes Fixed for Options and Futures?

The determination of lot size is not arbitrary. It is strictly governed by SEBI guidelines to ensure that derivative contracts remain suitable for serious traders rather than small retail speculators. As of November 2025, the golden rule is the ₹15 Lakh Threshold.

The ₹15 Lakh – ₹20 Lakh Rule

SEBI mandates that the notional value of any derivative contract (Futures or Options) must fall within the range of ₹15 Lakhs to ₹20 Lakhs at the time of review.

The Calculation Formula:
$$ \text{Lot Size} = \frac{\text{Target Contract Value (₹15,00,000)}}{\text{Current Index Price}} $$

Example Calculation:
If Nifty is trading at 24,000:
$$ \text{Ideal Lot Size} = \frac{15,00,000}{24,000} = 62.5 $$

Since lot sizes are usually rounded to convenient numbers (multiples of 5 or 10), NSE fixes it at 65 or 75 to stay safely above the ₹15 Lakh floor. This is why you saw the Nifty lot jump from 25 to 75 in late 2024—to catch up with the new regulatory minimum.

Stock F&O Lot Sizes

For individual stocks (like Reliance, HDFC Bank), the same logic applies. If a stock price doubles, its lot size is usually halved during the next review to keep the contract value near ₹15-20 Lakhs. This ensures that trading Reliance Futures requires roughly the same capital as trading SBI Futures, maintaining uniformity across the market.

Why are Lot Sizes Modified?

Lot sizes are dynamic. NSE and SEBI review them periodically (typically semi-annually) to adjust for market movements.

1. Market Rally Adjustment

If the Nifty 50 index rallies from 24,000 to 30,000, the contract value of a 75-unit lot would swell to ₹22.5 Lakhs (30,000 × 75). This exceeds the ₹20 Lakh upper band. To bring it back in line, NSE would reduce the lot size (e.g., from 75 to 50 or 65).

• Real-World Impact: In November 2025, NSE announced a reduction of Nifty lot size to 65 effective for contracts expiring after December 2025. This is a direct response to the index appreciating in value.

2. Market Correction Adjustment

Conversely, if the market crashes by 30%, the contract value might drop below ₹15 Lakhs. In this scenario, NSE would increase the lot size to ensure the contract value stays above the regulatory minimum.

3. Regulatory Overhaul

The most significant modification occurred in late 2024, when SEBI raised the minimum contract value from ₹5 Lakhs to ₹15 Lakhs. This was a structural change designed to:

• Discourage small retail participation: Higher contract values mean higher margin requirements (approx. ₹2-3 Lakhs for one Futures lot), filtering out traders with insufficient capital.
• Reduce market volatility: Fewer speculative small players can lead to more stable price discovery.

Purpose of Lot Size

Why does the stock market insist on lot sizes instead of allowing you to buy 1 unit of Nifty? The purpose is threefold:

1. Standardization

Lot sizes create a standard unit of trade. This makes liquidity management easier for market makers and institutions. When everyone trades in multiples of 75, matching buy and sell orders becomes highly efficient.

2. Risk Barrier (The “Safety Valve”)

This is the most critical function in the Indian context. Derivatives are leveraged instruments. By enforcing a minimum contract value of ₹15 Lakhs, regulators ensure that a trader needs significant capital (margin) to enter the game.

• Margin Requirement: To buy 1 lot of Nifty Futures (Value ₹18L), you typically need ~12-15% margin, which is ₹2.2 – ₹2.7 Lakhs.
• If lot sizes were small (e.g., 1 unit worth ₹24,000), a trader could enter with just ₹3,000 margin. This low barrier would attract inexperienced investors to high-risk products, leading to massive systemic risk.

3. Cost Efficiency

For institutional investors hedging portfolios worth crores, trading in small units would be tedious and costly due to transaction overheads. Large lot sizes allow them to hedge massive exposure with fewer contracts.

Conclusion

The shift to a 75-unit Nifty lot size and the ₹15 Lakh contract value rule marks a new era of maturity for Indian markets. While the capital requirement is higher, it filters out noise and pushes traders toward disciplined, capitalized strategies. The discontinuation of Bank Nifty weeklies simplifies the calendar but demands you adapt your expiry-day strategies. Whether you are hedging a portfolio or trading volatility, capital preservation is now more vital than ever.

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FAQs on Nifty Lot Size

1. What is NIFTY Lot Size?

As of November 2025, the Nifty 50 lot size is 75 units. This means one Futures or Options contract represents 75 times the index value. For a Nifty level of 24,000, the total contract value is approximately ₹18 Lakhs.

2. Is Lot Size 75 or 25 for NIFTY?

It is 75. The lot size was increased from 25 to 75 in late 2024 to comply with SEBI’s mandate raising the minimum derivative contract value to ₹15 Lakhs. Old references to 25 or 50 are outdated.

3. What is the Lot Size in F&O Stocks?

Stock lot sizes vary by company to match the ₹15-20 Lakh value rule. For example, HDFC Bank might have a lot size of 1,100, while MRF might have a lot size of 10. Always check the “Market Lot” on your trading terminal before placing an order.

4. How Much is 1 Lot of NIFTY Futures?

The notional value is Index Price × 75. At 24,000, it is ₹18,00,000. However, you only pay the margin to trade, which is typically 12-15% of the value. So, you need approximately ₹2.2 Lakhs to ₹2.7 Lakhs in your account to buy 1 lot.

5. Can I Buy 10,000 Lots in NIFTY?

Technically yes, but subject to Quantity Freeze limits and Open Interest (OI) limits. The quantity freeze for Nifty is typically around 1,800-2,000 units per order. To buy 10,000 lots, you would need to place multiple orders and adhere to the broker’s exposure limits.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Derivatives are leveraged products; loss can exceed capital. The information provided is for educational purposes and should not be construed as investment advice. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.