The National Stock Exchange (NSE) has announced its plan to introduce a new one paisa ticket for stocks trading below Rs 250 per share, as per a recent NSE circular.
Effective from 10 June, this initiative aims to streamline trading operations.
Currently, the minimum ticket size stands at 5 paise.
With this reduction, investors are expected to benefit from improved price discovery mechanisms.
The ticket size signifies the difference between the selling and buying price.
By decreasing the ticket size, the exchange aims to facilitate more accurate pricing. It ensurs that both buyers and sellers receive fair deals.
To illustrate, if a seller wishes to trade shares at Rs 199.98, the transaction would typically occur at either Rs 199.95 or Rs 200.
However, with the reduced ticket size, the trade will execute at Rs 199.98, enhancing precision in pricing.
The circular outlines that this adjustment will apply to both T+1 and T+0 settlement processes.
Furthermore, NSE states that ticket sizes will undergo monthly reviews and adjustments, aligning with the closing prices of the last trading day of each month.
Additionally, starting from 8 July, stock futures will adopt the same ticket size standardization.
NSE assured that reviews and revisions to ticket prices will encompass all expiries.
This move by the NSE is likely to enhance trading efficiency and ensure fairer pricing mechanisms in the stock market.
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