NSE Revises Tick Size from April 15: Key Update for Traders

The NSE is set to revise tick sizes for stocks, indices, and F&O contracts starting April 15, based on prices as on March 28.

What is Tick Size?

Tick size is the minimum price movement a security can make. For example, a ₹0.05 tick size means a stock can move from ₹100.00 to ₹100.05, but not ₹100.02.

What’s Changing?

Tick sizes will now vary based on the price of the stock or index:

Stocks:

These apply to both Stock and its corresponding Stock Futures

Indices:

These apply to both Index and its corresponding index futures

Why It Matters

• Better Price Discovery: Larger tick sizes reduce noise and improve trend clarity.

• Improved Liquidity: Higher-priced stocks now have more meaningful price moves.

• More Efficient Trades: Ideal for traders and algos relying on clean order books.

Final Thoughts

This tick size revision is a thoughtful move by NSE to align with global best practices. Traders, especially those dealing in Index Futures, high-value stocks, or using algo strategies, should review their order placements and strategy execution plans before April 15.

While it may seem like a small change, the impact on execution cost, strategy precision, and market behavior could be significant. Staying ahead of such regulatory changes gives you a definite edge.

Kindly note that the Options contracts on Index/Stock options contracts shall continue to be available for trading with a uniform tick size of Rs 0.05 or 5 paisa.

For more details, one can check the exchange circular(s) here:

1. https://nsearchives.nseindia.com/content/circulars/CMTR67133.pdf
2. https://nsearchives.nseindia.com/content/circulars/FAOP67134.pdf
3. https://nsearchives.nseindia.com/content/circulars/FAOP67135.pdf