NSE revises tick sizes for stock market derivatives

The National Stock Exchange (NSE) has revised the tick sizes for stocks, indices, and their respective futures and options (F&O) contracts. These changes will take effect on Tuesday, based on the closing prices of stocks as of March 28.

Tick size refers to the smallest price movement by which the price of a security, index, or derivative can change when the stock market fluctuates. A smaller tick size can enhance the liquidity and price efficiency of a stock, while a larger tick size may lead to less volatility and speculative trading. For example, if a stock has a tick size of Rs 0.05, its price can increase only from Rs 100.00 to Rs 100.05 but not to Rs 100.02.

The revised tick sizes as specified by the NSE, are as follows:

- Stocks priced below Rs 250: Tick size Rs 0.01
- Stocks priced between Rs 251 and Rs 1,000: Tick size Rs 0.05
- Stocks priced between Rs 1,001 and Rs 5,000: Tick size revised from Rs 0.05 to Rs 0.10
- Stocks priced between Rs 5,001 and Rs 10,000: Tick size revised from Rs 0.05 to Rs 0.50
- Stocks priced between Rs 10,001 and Rs 20,000: Tick size revised from Rs 0.05 to Rs 1.00
- Stocks priced above Rs 20,001: Tick size revised from Rs 0.05 to Rs 5.00 Rs 5.00​