Description
NSE updates quantity freeze limits for derivatives contracts on indices including BANKNIFTY, NIFTY, FINNIFTY, MIDCPNIFTY, and NIFTYNXT50 effective January 1, 2026.
Summary
NSE has revised the quantity freeze limits for derivatives contracts on five major indices effective January 1, 2026. The limits are computed per the methodology specified in F&O consolidated circular NSE/FAOP/67775 dated April 30, 2025. Members must update their trading applications with new contract files before the effective date.
Key Points
- Quantity freeze limits updated for five index derivatives: BANKNIFTY, NIFTY, FINNIFTY, MIDCPNIFTY, and NIFTYNXT50
- Changes based on computation methodology in chapter 1.8 of F&O consolidated circular
- BANKNIFTY limit set at 600 contracts
- NIFTY limit set at 1,800 contracts
- FINNIFTY limit set at 1,200 contracts
- MIDCPNIFTY limit set at 2,800 contracts
- NIFTYNXT50 limit set at 600 contracts
- Members must load updated contract files before trading on effective date
- Contract files available on Extranet server and NSE website
Regulatory Changes
The quantity freeze limits for index derivatives have been revised pursuant to chapter 1.8 of the F&O consolidated circular no. NSE/FAOP/67775 dated April 30, 2025. The new limits represent routine periodic adjustments based on the established computation methodology.
Compliance Requirements
- Members must update trading applications: Load the updated contract.gz and NSE_FO_contract_ddmmyyyy.csv.gz files before trading on January 1, 2026
- File access locations:
- Extranet server: faoftp/faocommon directory
- NSE website: https://www.nseindia.com/all-reports-derivatives
- Quantity freeze details: https://www.nseindia.com/products-services/equity-derivatives-contract-information
Important Dates
- Circular Date: December 31, 2025
- Effective Date: January 1, 2026
Impact Assessment
Market Impact: Medium - The revised quantity freeze limits will affect order placement and position sizing for traders in index derivatives. NIFTY has the highest limit at 1,800 contracts, followed by MIDCPNIFTY at 2,800 contracts. BANKNIFTY and NIFTYNXT50 have more restrictive limits at 600 contracts each.
Operational Impact: Members must ensure their trading systems are updated with new contract files before market opening on January 1, 2026 to avoid order rejections. The quantity freeze mechanism prevents erroneously large orders from being entered into the system, protecting market integrity.
Trading Impact: Traders planning large positions across these indices need to be aware of the new limits to structure their orders appropriately and avoid order freezes.
Impact Justification
Updates quantity freeze limits for major index derivatives which affects trading limits but is routine periodic adjustment based on computation methodology