In order to curb excessive volatility, top stock exchange BSE today tweaked the circuit limit for share movement of as many as 12 companies including J Kumar Infraprojects.
The new limits, effective tomorrow, will ensure stock prices do not go up or down beyond a certain level during the trading session.
Circuit filter mechanism is used by stock exchanges to keep excessive volatility in check. It is the maximum fluctuation that is allowed during trading, which gets suspended if the permissible limit is hit in either direction.
Share price of nine companies -- J Kumar Infraprojects, Millitoons Entertainment, Riga Sugar Company, Shreyas Shipping & Logistics, Weizmann, Faze Three, Captain Polyplast, Ponni Sugars (Erode) Ltd and BS Ltd -- cannot move more than 10 per cent in day.
Besides, the exchange has set a circuit limit of 5 per cent for Rajshree Sugars & Chemicals, Eldeco Housing & Industries and Sang Froid Labs (India) Ltd.
"...The circuit filters has/have been changed from their existing levels in the...Scrip/s (12) with effect from August 17, 2016," BSE said.
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