)
The National Stock Exchange (NSE) will remove price bands of stocks of six companies, including Engineers India and Oil India, from tomorrow.
The decision to remove price bands, which limit the maximum upward or downward movements in a share during a day’s trading within a pre-determined range, has been taken by NSE after a periodic surveillance review.
The six companies whose stocks would not be subjected to a price band also include Bharat Electronics Ltd, Container Corporation of India, Shipping Corporation of India and Gujarat Mineral Development Corporation Ltd.
“The said action will be reviewed periodically,” NSE added.
Price bands serve as "circuit breakers" to prevent extreme fluctuations in market prices. The price bands are set to restrict the movement of stock prices (either up or down), of listed securities.
This also helps curb possible manipulation in share prices by operators.
