NSE to launch 1 Paisa Spread for stocks below INR 250

[shraddha]

NSE to launch 1 Paisa Spread for stocks below INR 250 starting 10th June. The Paisa tick size which is the minimum price change between bid and offer prices, was implemented by BSE in March last year for stocks below INR 100.

[PravinJ]

@pratik01 mentioned that when BSE did this.

[BIG NEWS - BSE] Change in stock tick size

Hi all, As per the recent announcement made by BSE the tick size of stocks is reduced to Rs. 0.01 (1 paise) for all the stocks below Rs. 100. This will reduce the buy/sell costs. NSE has tick size of Rs. 0.05 (5 paise) [Screenshot_20230503_205120_Gmail]

[thisisbanerjee]

Hi @shraddha Just to confirm that I got it right. Say, now the stock price of IDFCFIRSTB is 78, wherein the bid is 78 and the ask is 78.05.

With the paisa spread, it will look something like this, bid 78.01 and ask is 78.02. Did I get that right?

[ValueInvestor0]

Good initiative by exchanges (and my OCD brain could now calm down) as i could make my average buy or sell my holdings in whole number and not remain something like 47.37 and so on.

Next feature introduction by exchanges should be ability to buy fractional units of securities especially like that of > 25k for single stock.

[iamshrimohan]

@thisisbanerjee Yes. That’s correct

@ValueInvestor0 The impact of this is majorly for the large institutions where slippage is quite significant to due greater tick size. The slippage tolerance will now reduce and mainly the Small and Mid MFs to have a lower expense ratio (not that significant though but still good move). Fractional Securities are indeed a good idea, I wish this soon comes out from the SEBI’s end.