SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMD/POLICY/CIR-19/97
August 11, 1997
The Presidents/Executive Directors/Managing Directors
of All the Stock Exchanges.
Dear Sir,
In order to encourage participation of small investors in highly priced public issues/offers for sale, it has been decided to change the existing provision regarding tradeable lot. Accordingly, issuers are given option to fix the minimum marketable lots on the basis of offer price subject to the condition that marketable / tradeable lot shall not be more than 100 shares in any case. Thus, issuer, if so desires, can go for tradeable lot higher than the minimum tradeable specified for a particular offer price range provided that it is not more than 100 shares. You are therefore, advised to carry out the following amendments to the Bye-Laws and Regulations of the Exchange, in order to give effect to the above decision.
MINIMUM TRADEABLE LOTS :
The successful applicants of new issues will be issued share certificates / instruments for eligible number of shares in tradeable lots. The minimum tradeable lot, in case of shares of face value of Rs. 10/- each, shall at the option of the issuer/offeror, be fixed on the basis of offer price as given below:
Provided that the maximum tradeable lot in any case shall not exceed 100 shares.
Offer price per share Minimum Tradeable Lot
Upto Rs. 100 100 shares
Rs. 101 – Rs. 400 50 shares
Greater than Rs. 400 10 shares
You are advised to keep us informed about the steps taken to implement the above changes.
Yours faithfully,
O.P.GAHROTRA
SR.EXECUTIVE DIRECTOR
SECONDARY MARKET DEPARTMENT 
