Market lot rules revised

MUMBAI, Aug 1: SEBI has decided to allow corporates to fix the minimum marketable lot for their shares on the basis of the offer price. This follows its effecting a change in the existing provision regarding tradable lot in the disclosure and investor protection guidelines.

The existing provision requires the tradeable/marketable lot to be 100 shares for shares of face value of Rs 10 each. As per the new provision, for shares having offer price upto Rs 100, the minimum tradebale lot stipulated is 100 shares. For an offer price between Rs 101 and Rs 400, the minimum lot is 50 shares and for shares priced greater than Rs 400, the minimum lot can be 10 shares.

According to SEBI, this change has been effected in order to encourage participation of small investors in highly priced public issues/offers for sale. However, the maximum tradeable lot in any case shall not be more than 100 shares, the release adds. The guidelines have come into effect from July 29. These will also be applicable to the offer documents with SEBI.