Description
NSE updates quantity freeze limits for derivatives contracts on five indices effective February 1, 2026.
Summary
NSE has updated quantity freeze limits for derivatives contracts on five indices effective February 1, 2026. The limits are computed as 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
- Updated quantity freeze limits for five index derivatives
- BANKNIFTY: 600 contracts
- NIFTY: 1,800 contracts
- FINNIFTY: 1,800 contracts
- MIDCPNIFTY: 2,800 contracts
- NIFTYNXT50: 600 contracts
- Members must load updated contract.gz and NSE_FO_contract_ddmmyyyy.csv.gz files before trading
- Contract files available on Extranet server directory faoftp/faocommon
- Contract files also accessible on NSE website derivatives reports section
Regulatory Changes
Quantity freeze limits have been revised for all five major index derivatives based on the computation methodology outlined in NSE’s F&O consolidated circular (chapter 1.8). These limits represent the maximum order quantity beyond which orders will be frozen by the system.
Compliance Requirements
- Trading Members: Must download and load updated contract files (contract.gz and NSE_FO_contract_ddmmyyyy.csv.gz) into trading applications before February 1, 2026
- File Location: Available on Extranet server at faoftp/faocommon directory
- Alternative Access: Contract files can be downloaded from https://www.nseindia.com/all-reports-derivatives
- Reference Information: Detailed quantity freeze limits for each underlying available at https://www.nseindia.com/products-services/equity-derivatives-contract-information
Important Dates
- Circular Date: January 30, 2026
- Effective Date: February 1, 2026
- Action Deadline: Members must update systems before market opens on February 1, 2026
Impact Assessment
This update affects all participants trading index derivatives on NSE. The quantity freeze limits serve as risk management controls to prevent erroneous large orders. MIDCPNIFTY has the highest freeze limit at 2,800 contracts, while BANKNIFTY and NIFTYNXT50 have the lowest at 600 contracts each. NIFTY and FINNIFTY maintain identical limits at 1,800 contracts. Members must ensure timely system updates to avoid order rejections on the effective date.
Impact Justification
Operational update affecting trading limits for index derivatives. Important for risk management and order execution but not market-wide structural change.