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Derivative contract size

MUMBAI, FEB. 24. The Securities and Exchange Board of India has said the existing derivatives contract or value of Rs. 4 lakhs and above should be halved while those with a value of Rs. 8 lakhs should be reduced by one-fourth the size.

For the sake of standardisation, where the derivatives contract size was less than Rs. 2 lakhs, the existing lot size or multiplier should be increased so as to bring the contract size to Rs. 2 lakhs.

The increase in size should be effected increasing the lot size/multiplier in multiples of two and the stipulation that the lot size/multiplier should be in the multiple of 100 stands revoked, SEBI said in a communication. Before implementing these measures the exchanges should give a two week notice to the market, it said. — PTI

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