SEBI has recently announced increase in the average lot size to Rs. 5 Lacs or more. What it means for retail customers is that Traders who use to trade with funds to purchase the x Number of Lot Sizes are now able to purchase only the (x/2.5) times with same amount Or Let us say that earlier you had Rs. 10 Lacs in your Account. Using this amount, You were able to Short around 5 Lot Size of Futures Contracts having multiple of Rs. 2 Lacs per lot. Now, you can only purchase the 1 Lot or 2 Lot at max. Hence Say Bye Bye to Position Sizing, Trade Management or other sort of Risk Management. High Margin requirement is never good for traders.
The new circular would be effective from the Beginning of November 2015 contracts.
Can’t say for sure,May be Regulator are looking out to China Market and learning from their mistake.So far SEBI has done commendable job in all the segment. Hope this decision will also helpful in long run for fulfilling utmost important “Investors Interest First” Motto.