Bourses relax dynamic price bands for derivative stocks

Leading bourses BSE and NSE have relaxed the dynamic price bands for stocks that trade in the derivatives segment with effect from today.
Currently, stock exchanges have a mechanism of dynamic price bands, commonly known as dummy filters or operating range, which prevents acceptance of orders for execution that are placed beyond the price limits set by the bourses.
Such dynamic price bands are relaxed by the exchanges as and when a market-wide trend is observed.
"In the event of a market trend in either direction, the dynamic price bands may be relaxed during the day in coordination with the other exchange," according to similarly worded circulars from the BSE and the NSE.

"For the purpose of relaxing the dynamic price bands, the exchange will take into account that a minimum of 10 trades must be executed with multiple unique client code (UCC) on both sides of the trade at or above 9.9 per cent or more of the base price and in further multiples of 5 per cent of the price movement," they added.
The relaxation in dynamic price bands came into effect from today.

Exit polls have projected the BJP-led NDA would form the next government at the Centre.
The benchmark Sensex today touched an all-time high of 24,068.94 points before closing at 23,871.23 points.

Market regulator Securities and Exchange Board of India (Sebi) and intermediaries are closely watching volatility in the stock market. Besides, investors are keeping a close tab on stock market movements.
Market authorities are also working to ring-fence systems and infrastructure from any sudden volatility on and around the results day.
Movements in the stock market on May 16, when the votes are counted, and on May 19 would be under special watch, sources said.