Description
NSE updates quantity freeze limits for index derivatives including BANKNIFTY, NIFTY, FINNIFTY, MIDCPNIFTY, and NIFTYNXT50 effective September 1, 2025.
Summary
NSE has updated quantity freeze limits for derivatives contracts on five major indices effective September 1, 2025. The new limits are: BANKNIFTY (900), NIFTY (1800), FINNIFTY (1800), MIDCPNIFTY (2800), and NIFTYNXT50 (600).
Key Points
- Quantity freeze limits updated for five index derivatives
- BANKNIFTY limit set at 900 contracts
- NIFTY and FINNIFTY limits both set at 1800 contracts
- MIDCPNIFTY has the highest limit at 2800 contracts
- NIFTYNXT50 has the lowest limit at 600 contracts
- Members must update contract files before trading begins
Regulatory Changes
Quantity freeze limits have been revised based on the computation methodology outlined in F&O consolidated circular NSE/FAOP/67775 dated April 30, 2025.
Compliance Requirements
- Members must load updated contract.gz and NSE_FO_contract_ddmmyyyy.csv.gz files in trading applications before the effective date
- Contract files available from faoftp/faocommon directory on Extranet server
- Alternative access through NSE website at specified paths
- Members should verify quantity freeze details for each underlying on the NSE website
Important Dates
- Effective Date: September 1, 2025
- Circular Date: August 29, 2025
Impact Assessment
These updated quantity freeze limits will affect order placement strategies for institutional traders and algorithmic trading systems. Traders dealing with large volumes in index derivatives need to adjust their order sizes accordingly to avoid order rejection due to quantity freeze violations.
Impact Justification
Updates to quantity freeze limits directly affect trading strategies and risk management for all F&O traders dealing with index derivatives