27 May 2024
The National Stock Exchange (NSE) has decided to introduce one Paisa tick size for all stocks below the trading price of Rs 250 per share, according to a circular on NSE dated May 24. The measure - being introduced from June 10 - is seen as a step towards better price discovery, once which also captures the intense competition between exchanges NSE and BSE for market dominance, according to some market participants. A tick size is basic difference in price quote that exists between two consecutive bid and offer prices. All securities - except ETFs - under EQ, BE, BZ, BO, RL and AF series will see their tick sizes change from the earlier tick of five paise, according to the NSE circular. The tick size for securities in T+1 settlement will also be applicable for T+0 settlement (series T0), the circular added.
The National Stock Exchange (NSE) has decided to introduce one Paisa tick size for all stocks below the trading price of Rs 250 per share, according to a circular on NSE dated May 24. The measure - being introduced from June 10 - is seen as a step towards better price discovery, once which also captures the intense competition between exchanges NSE and BSE for market dominance, according to some market participants. A tick size is basic difference in price quote that exists between two consecutive bid and offer prices. All securities - except ETFs - under EQ, BE, BZ, BO, RL and AF series will see their tick sizes change from the earlier tick of five paise, according to the NSE circular. The tick size for securities in T+1 settlement will also be applicable for T+0 settlement (series T0), the circular added.
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