Securities and Exchange Board of India (SEBI) has proposed a new framework to align price bands for the same stock across both NSE and BSE. This move is aimed at eliminating pricing discrepancies that often arise between the two exchanges, especially in illiquid and thinly traded counters.
Currently, small-cap and less liquid stocks sometimes show different price limits on each exchange, leading to confusion and inefficiencies in trading. SEBI’s proposal seeks to create a uniform system that ensures consistency, smoother transactions, and better price discovery. By harmonising rules, the regulator hopes to reduce anomalies that disadvantage retail investors and distort market behaviour.
The initiative is expected to improve liquidity in smaller stocks, making them more attractive for investors. Retail participants, who often face challenges due to inconsistent pricing, stand to benefit the most from this reform. With uniform price bands, trading activity could become more transparent and efficient, boosting confidence in the equity markets.
Market experts believe this step will strengthen India’s capital market framework, ensuring fairer opportunities for all categories of investors. If implemented, the proposal could mark a significant milestone in SEBI’s ongoing efforts to enhance market integrity and investor protection.
