SEBI Proposes a Fix for Price Band Anomalies in Illiquid Stocks

Did you know that the same stock can have different price bands on NSE and BSE simply because it didn't trade on one of the exchanges the previous day? This issue is common in illiquid stocks, where trading activity may be concentrated on just one exchange. Since each exchange currently sets its price band based on its own previous closing price, significant discrepancies can arise. 🔹 Proposed Solution: ✅ If a stock trades on only one exchange, the other exchange will adopt that closing price. ✅ If a stock trades on multiple exchanges but not on all, the inactive exchange will use the closing price from the exchange with the highest trading volume. ✅ If the stock trades on all exchanges—or on none—there will be no change, and each exchange will continue using its own closing price. To facilitate this mechanism, NSE and BSE may enter into data-sharing arrangements for closing prices. 📌 Why It Matters: A simple yet meaningful reform that can improve price discovery, reduce unnecessary price band differences, and create a more uniform trading experience for investors. 📅 Consultation Paper Issued: June 11, 2026 🗓 Public Comments Open Until: July 2, 2026 A quiet regulatory change that could make a big difference for market participants.