Mumbai, May 27 (IANS): The National Stock Exchange is set to launch a new one paisa ticket for stocks below the trading price of Rs 250 per share, according to the NSE circular.

As per the circular, the measure will be implemented from June 10.

At present the share has a ticket size of at least 5 paise. Investors will get the direct benefit of reduced ticket size.

Ticket size is the difference between the price of a seller and the price of a buyer. In such a situation, reducing the ticket size will enable better price discovery and the buyers and sellers will get the right price.

For example, if a person wants to sell shares at Rs 199.98, the deal will be done not at Rs 199.98 but at Rs 199.95 or Rs 200. Due to the reduction in ticket size, the deal will be done at Rs 199.98.

According to the circular, the ticket size is being reduced from 5 paise to one paise. This will apply to the T+1 settlement as well as the T+0 settlement.

NSE said in the circular that the ticket sizes will be reviewed and adjusted every month based on the closing price of the last trading day of the month.

NSE further said in the circular that the stock futures will have the same ticket size from July 8. Reviews and revisions in the ticket price will apply to all expiries.