Leading exchange BSE has revised the circuit limit for the shares of NDTV and ten other firms to curb excessive volatility in their prices.
For the second consecutive day today, the shares of New Delhi Television (NDTV) hit the upper circuit limit and closed with gains of 20 per cent at Rs 46.80, amid the Securities and Exchange Board of India ordering Vishvapradhan Commercial to make an open offer to the company's shareholders.
Circuit filter mechanism is used by the BSE to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.
Among the ten firms are Arcotech, Gammon Infrastructure Projects, Vanta Bioscience, KRBL, GV Films, Steel Exchange India, Sumeet Industries, Leel Electricals, Jash Dealmark and Sindhu Trade Links.
The new limits, effective tomorrow, will ensure stock prices do not fluctuate beyond a prescribed level during a session.
In a notice, the BSE said trading members of the exchange are hereby informed that the price band has been revised from their existing levels in the 11 scrips with effect from June 29, 2018.
According to the notice, a circuit limit of 10 per cent has been set for NDTV, Arcotech, Gammon Infrastructure Projects, Vanta Bioscience and KRBL.
Besides, a price band of 5 per cent has been set for GV Films, Steel Exchange India, Sumeet Industries, Leel Electricals, Jash Dealmark and Sindhu Trade Links.
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