Action required: F&O lot sizes revised

As per our previous communication, we would like to remind you about the lot size revisions and subsequent actions for BANKNIFTY, NIFTY, and SENSEX quarterly and half-yearly contracts. The revised lot sizes are detailed in the following table:

Which contracts are impacted by this?
The quarterly/half-yearly contracts expiring from March 2025 onwards are getting impacted.

What action is required from you?
If your existing quarterly/half-yearly positions are not in multiples of the revised lot size, you would be required to square off the existing position or purchase more lots.

Example: If you hold an existing position with 1 lot of NIFTY (March 2025 expiry and later) and the current lot size is 25, you have two options to align with the revised lot size of 75:
1. Add 2 more lots
2. Square off your existing 1-lot

Why is this recommended?
Post revision, if your existing positions aren’t in multiples of the new lot size, you won’t be able to close/square off the position or book profit / losses.

IMPORTANT: Such a position may be worthless on the day of expiry

What actions shall be taken by Upstox?

1. If you don’t have existing Futures positions with quarterly/half-yearly expiry, you won’t be able to place fresh orders in such contracts. Fresh orders shall be permitted only after the expiry of the existing December 2024 contract.

2. If you have a long (Option Buy) position with quarterly/half-yearly expiry of March 2025 and later, no action shall be taken by Upstox. You can either exit the position or purchase further lots to match it to the new lot size. Otherwise, such positions may become worthless.

3. If you have a short (Option Sell) position with quarterly/half-yearly expiry of March 2025
and later, you shall be permitted to trade in such contracts until restricted by Upstox.

4. If your existing short positions are not in multiples of the revised lot size by the below deadline, margin and MTM requirements will apply. As we won’t be able to square off such positions in case there is a margin shortfall post revision of lot size, we will fully or partially square off the existing short position in December itself.

The permitted timeline for matching short positions in the revised multiples is as follows:

Please take cognisance of all your positions and plan your trade accordingly.