• UGI USER
  • May 28, 2024
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NSE REDUCES TICK SIZE TO ONE PAISA FOR INCREASED LIQUIDITY

Why in the news?

  • The National Stock Exchange (NSE) is set to implement a one paisa tick size for all stocks priced below ₹250 starting June 10.
  • This initiative aims to boost liquidity and improve price discovery by enabling more precise price adjustments.
source:frontiers

Key points: Tick size for all stocks

  • Tick size: Minimum price movement for stock prices during a session.
  • Defines smallest increment/decrement in stock trading prices.
What is The National Stock Exchange (NSE)?

  • NSE: India’s largest financial market, fourth globally by trading volume.
  • NSE is one of two main Indian stock exchanges, alongside BSE.
  • First in India to offer fully automated electronic trading.
  • Became the world’s largest derivatives exchange by contracts traded in 2023 the Futures Industry Association (FIA).
  • Established in 1992 for equity market transparency.
  • First in India with fully automated electronic trading.
  • Headquartered in Mumbai, operates in debt, equity, and derivatives.
  • Facilitates new listings, IPOs, debt issuances, and IDRs.
  • Benchmark index: S&P CNX Nifty; other indices include CNX Nifty Junior, India VX, S&P CNX Defty, S&P CNX 500.
  • Offers clearing and settlement via National Securities Clearing Corporation.

Associated Article:

https://universalinstitutions.com/financial-market-in-india/