To curb excessive volatility, leading stock exchange BSE today revised the circuit limit for share movement of as many as 10 companies, including Unitech International and Simbholi Sugars.
The new limits, effective tomorrow, will ensure 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 keep excessive volatility in check. It is the maximum fluctuation in price that is allowed during trading, which gets suspended if the permissible limit is hit in either direction.
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Share price of the eight firms -- Unitech International and Simbholi Sugars, Chromotic India, Safal Securities, Onni Sugars (Erode), C&C Construction, Sakthi Sugars, KCP Sugar & Industries Corp -- cannot change by more than 10 per cent in a day.
The exchange has also set an upper limit of 5 per cent for Vision Cinemas and Euro Ceramics, 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 (10) with effect from June 16, 2016," BSE said.
