Why are the market lots different for different stocks ?
According to L C Gupta Committee Report on Derivatives, at the time of introduction of Derivatives Contracts on any underlying the value of the contract should be at least Rs. 2 lakhs. This value of Rs. 2 lakhs is divided by the market price of the individual stock to arrive at the initial ‘market lot’ for it. It may be mentioned here that the only exception to this rule is the ‘mini’ contract on the Sensex (both futures and Options). The market lots are reviewed twice a year and changes are made as per SEBI guidelines to re-align the market lots in cases where the value has increased / decreased drastically from the value at the time of introduction / previous review.
