BSE scraps 25-paise tick on specified-group scrips
Our Market Bureau
Mumbai, Jan 23: In an attempt to meet market standards and facilitate jobbers, the Bombay Stock Exchange (BSE) has decided to do away with the rigidity of imposing a tick size of 25 paise on A group stocks.However, stocks valued at over Rs 200 will continue to attract a tick size of 25 paise. As part of the revamp exercise, the exchange has decided to impose a tick size of 5 paise on stocks which fall in the price band of Rs 1 to Rs 50. According to market sources, the decision, which will be implemented from January 27, follows representations made by brokers and jobbers. According to a BSE broker, in a lacklustre market a higher tick size would result in higher costs and at the same time take away the opportunity to earn money by way of jobbing. According to BSE officials, the move would help infuse liquidity into the system besides increasing volumes at the counters. Stocks valued in the band of Rs 50 to Rs 100 will carry a tick size of 10 paise, while stocks quoting in the band of Rs 100 to Rs
150 will carry a tick size of 15 paise. Stocks quoting in the band of Rs 150 to Rs 200 will attract a tick size of 20 paise. The exchange has, however, decided to continue with the same tick size for the B1 and B2 group securities. In the case of B1 group securities, the exchange has fixed a tick size of 5 paise on stocks falling in the band of Rs 1 to Rs 25. Stocks priced above Rs 25 will continue to attract a tick size of 25 paise. In the case of B2 group stocks, a tick size of 10 paise will be imposed on stocks quoting in the band of Rs 1 to Rs 50, while a tick size of 25 paise will be imposed on stocks quoting in the band of Rs 50 to Rs 200, and 50 paise in the case of stocks quoting in the Rs 200 to Rs 500bracket. Stocks quoting above Rs 500 attract the highest tick size at Re 1.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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