NSE To Introduce 1 Paisa Tick Size For Stocks Below Rs 250

NSE: The National Stock Exchange (NSE) has decided to introduce a one-paise tick size for all shares below a trading price of Rs 250. The exchange issued a circular on May 24th for the same and the new system will be implemented on June 10. This is viewed as a step in the direction of finding better prices and shows the intense competition between the NSE and BSE exchanges for market dominance.

Tick size is the basic price difference between two consecutive bids and the offer price. According to the NSE circular, all securities under EQ, BE, BZ, BO, RL, and AF series, except ETFs, will change from the previous five-paise tick size. The circular said that the tick size for securities in the T+1 settlement will also apply to the T+0 settlement (Series T0).

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NSE said that the tick size will be reviewed and adjusted every month based on the closing price of the last trading day of the month. Stock futures will also have the same tick size from July 8th as applicable in the cash market segment, and the revision in tick size will apply to all expiries, i.e., near-month, middle-month, and far-month, NSE said in a circular.

Sensex jumps over 1400 last month

Last week, the 30-share BSE Sensex gained 1,404.45 points or 1.89 percent. At the same time, the National Stock Exchange's Nifty rose by 455.1 points or two percent. On Friday, the Sensex reached an all-time high of 75,636.50 points during intraday trading. On the same day, Nifty crossed the 23,000 mark for the first time. It reached its all-time high of 23,026.40 during intraday trading.

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