Description
BSE announces revised market lot sizes for 31 SME companies effective November 10, 2025, in accordance with SEBI guidelines for standardized lot sizes.
Summary
BSE has announced changes in market lot sizes for 31 companies listed on the SME Exchange Platform, effective November 10, 2025. The revision is in accordance with SEBI circular no. CIR/MRD/DSA/06/2012 dated February 21, 2012, which provides guidelines for standardized lot sizes of SME securities in secondary market trading. All affected companies will see their market lot sizes reduced, with reductions ranging from 50% to 75% of current lot sizes.
Key Points
- 31 SME companies will have revised market lot sizes effective November 10, 2025
- Changes comply with SEBI guidelines on standardized lot sizes for SME securities
- All lot sizes are being reduced to improve accessibility and liquidity
- Largest absolute reduction: KGES from 6,000 to 3,000 shares
- Smallest lot size after revision: CPML and RAJESH at 50 and 100 shares respectively
- Trading members must update their systems to reflect the new lot sizes
- Notice number: 20251008-58
Regulatory Changes
This circular implements SEBI’s guidelines issued via circular no. CIR/MRD/DSA/06/2012 dated February 21, 2012, which mandates standardized lot sizes for SME securities trading on the SME Exchange Platform. The Exchange has reviewed and revised lot sizes to ensure compliance with these regulatory requirements and to enhance market accessibility.
Compliance Requirements
- Trading Members: Must update trading systems to reflect new market lot sizes before November 10, 2025
- Broker-Dealer Systems: Need to configure order management systems for revised lot sizes
- Market Participants: Should be aware of the new minimum trading quantities for affected securities
- Contact Points: Trading members can reach out to Santosh Desai (2272 5808, santosh.desai@bseindia.com) or Prasad Bhide (2272 8388, prasad.bhide@bseindia.com) for clarifications
Important Dates
- Circular Date: October 8, 2025
- Effective Date: November 10, 2025 - Revised market lot sizes become applicable
Impact Assessment
Market Impact: The reduction in lot sizes will lower the minimum investment amount required for trading these SME stocks, potentially improving retail participation and liquidity. For example, YASHHV’s lot size reduction from 1,000 to 250 shares (75% reduction) significantly lowers the entry barrier for investors.
Operational Impact: Trading members must ensure their systems are updated to handle the new lot sizes. Order validation logic, position limits, and risk management systems need reconfiguration.
Investor Impact: Positive for retail investors as smaller lot sizes mean lower capital requirements for taking positions. This democratizes access to SME securities and may lead to improved price discovery.
Liquidity Impact: Reduced lot sizes typically enhance liquidity by enabling more participants to trade and allowing for finer price increments in order placement.
Impact Justification
Operational change affecting 31 SME companies with lot size reductions ranging from 50% to 75%, impacting trading accessibility and liquidity for retail investors in the SME segment.