To curb excessive volatility, leading stock exchange BSE today revised the circuit limit for share movement of as many as 13 companies, including GVK Power & Infrastructure and Jaypee Infratech.
The new limits effective tomorrow will ensure that the stock prices do not go up or down beyond a level during a trading session.
Circuit filter mechanism is used by stock exchanges to check excessive volatility in markets.
It is the maximum fluctuation in price allowed during trading, which gets suspended if the maximum permissible limit is hit in either direction.
Share price of the 12 firms - Jaypee Infratech, GVK Power & Infrastructure, Kiri Industries, Uttam Sugar Mills, Upper Ganges Sugar & Industries, Suryachakra Power Corporation, Ugar Sugar Works, Rai Saheb Rekhchand Mohota Spinning & Weaving Mills, Shreyas Shipping & Logistics, Automotive Stampings and Assemblies, Oudh Sugar Mills and Kesar Enterprises - cannot change by more than 10 per cent in a day.
The exchange has also set an upper limit of 5 per cent for Century Extrusions, BSE said in a circular.
"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels...In the scrips (13) with effect from June 15, 2016," BSE said.
