November 26, 2024

Dear Sherus,

We want to keep you informed about important update regarding recent revisions in lot sizes and brokerage structures. These changes are based on new rules from SEBI (SEBI/HO/MRD/TPD-1/P/CIR/2024/132) issued on October 1, 2024.

Revised lot sizes for Index Derivatives:

Effective late December 2024, lot sizes for index derivatives will be revised to streamline and standardize contract size all futures and options contracts. This change will provide a more consistent trading experience for our clients.

All the changes will be implemented starting from the following expiration dates.

What’s changing?

The cornerstone of these updates is the revision of lot sizes for equity index derivatives. This revision is expected to streamline and standardize the contract sizes, with the aim of providing a more uniform trading experience.

All the changes will be implemented starting from the following expiration dates:

For additional information, please refer to the Exchange circulars on the NSE and BSE websites.

The revised lot size for index derivatives will be as follows:

Brokerage structure update:

• From December 30, 2024, there will be a change in the brokerage rates for all options contracts. Due to updates in lot sizes, the brokerage could go up to 3 times higher.
• This update only applies to equity options contracts. There will be no changes to commodity or currency options.

How you can help:

As frontline employees, your role in guiding clients through this transition is crucial. Here’s how you can assist:

• Communicate the changes: Clearly explain the updated lot sizes and brokerage structure to clients and reassure them about the consistency in service and support.
• Provide clarity: Ensure clients understand that these changes only affect equity options contracts, with no impact on commodity or currency trading.
• Assist with queries: Be prepared to answer any questions regarding how these revisions will impact their trading.

This transition is part of our ongoing commitment to providing our clients with an enhanced trading experience while adapting to regulatory changes. We appreciate your continued support and trust in navigating these changes together.