The Securities and Exchange Board of India sub-group on risk management today recommended implementation of an index-based, marketwide circuit breaker system to be applied at three stages of the index movement, either way, at 10 per cent, 15 per cent and 20 per cent.
The group also decided to shift the margining system from net basis to gross basis (sales and purchases), with effect from September 3.
The sub-group also decided that there should be individual scrip wise price bands of 20 per cent either way for all scrips in the compulsory rolling settlement except for scrips on which derivatives products are available or scrips included in indices on which derivatives products are available.
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This recommendation would, however, need the approval of the Sebi board since at its earlier meet on May 14 it had decided to do away with price bands altogether in rolling settlement.
The marketwide circuit breakers would be triggered by movement of either BSE