Description

BSE announces revision in 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 SME companies listed on the SME Exchange Platform, effective November 10, 2025. This revision follows SEBI circular CIR/MRD/DSA/06/2012 dated February 21, 2012, which provides guidelines for standardized lot sizes of SME securities in the secondary market. All affected companies will have their market lot sizes reduced by 50-75%, making shares more accessible to retail investors.

Key Points

  • 31 SME companies will have revised market lot sizes effective November 10, 2025
  • Changes are in accordance with SEBI circular CIR/MRD/DSA/06/2012 dated February 21, 2012
  • All revisions involve reduction in lot sizes, ranging from 50% to 75% decreases
  • Trading members must update their systems to reflect new lot sizes
  • The exchange has reviewed lot sizes as part of regular compliance with SEBI guidelines

Regulatory Changes

This circular implements SEBI’s guidelines for standardized lot sizes of SME securities. The changes ensure compliance with SEBI circular CIR/MRD/DSA/06/2012 which mandates periodic review and adjustment of lot sizes for SME companies trading on dedicated platforms.

Compliance Requirements

  • Trading members must update their systems to accommodate revised market lot sizes
  • All trades from November 10, 2025 must be executed in the new lot sizes
  • Trading members should contact BSE officials (Santosh Desai at 2272 5808 or Prasad Bhide at 2272 8388) for clarifications
  • Members must ensure proper configuration before the effective date to avoid trading disruptions

Important Dates

  • Circular Date: October 8, 2025
  • Effective Date: November 10, 2025

Impact Assessment

Market Impact: The reduction in lot sizes will improve accessibility and liquidity for SME stocks by lowering the minimum investment requirement. For example, Navigant Corporate Advisors’ lot size reduces from 2500 to 1250 shares (50% reduction), and Yashhv Limited reduces from 1000 to 250 shares (75% reduction).

Investor Impact: Retail investors will benefit from lower entry barriers, requiring less capital to participate in SME trading. This could potentially increase trading volumes and market participation in the SME segment.

Operational Impact: Trading members and market participants must update their systems, risk management frameworks, and trading strategies to reflect the new lot sizes before the effective date.

Impact Justification

Affects trading parameters for 31 SME companies with reduced lot sizes, impacting liquidity and accessibility for retail investors in SME segment