Equity derivatives in India
In this chapter: Index futures, stock futures, index options, stock options · Currency derivatives — overview
India has both equity index derivatives (NIFTY 50, BANKNIFTY, FINNIFTY, etc.) and stock derivatives (single-stock futures and options on F&O-listed stocks, ~180+ stocks). Currency derivatives (USD/INR, EUR/INR pairs) trade on NSE and BSE with smaller lot sizes (1000 USD typically). Most retail volume is in NIFTY and BANKNIFTY options on weekly expiries.
Lot sizes change periodically as underlying prices move (SEBI sets a target lot value, currently around ₹5-10 lakh). NIFTY 50 lot size moved from 75 to 25 historically; current value approx ₹5L per lot. BANKNIFTY around ₹6L per lot. Stock futures lot sizes vary by stock. Expiry: NIFTY weekly (Tuesdays for index until 2024-25 changes; verify current); monthly contracts last 3 months are tradable simultaneously. Currency derivatives expiry is typically last working day of the month.
A key 2024-25 regulatory change: SEBI restricted weekly expiries to one index per exchange to curb retail speculation. Multiple weekly expiries on different days had created continuous-gambling-like behaviour. Distributors and dealers must understand this and stay current with circulars. Also note: derivatives are not allowed in retirement accounts (PF, NPS); the regulatory boundary on suitability is sharp.