To curb excessive volatility, stock exchange BSE has revised the circuit limit for share movement of SBI's associate State Bank of Travancore, which has zoomed by nearly 40 per cent in the last three sessions.
The exchange has revised circuit limit of as many as seven companies, including Hindustan Wires.
The limits, effective from June 20, will ensure stock prices do not go up or down beyond a level during a 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 three firms -- State Bank of Travancore, Shalimar Agencies and Tokyo Plast International -- cannot change by more than 10 per cent in a day, BSE said in a circular.
The exchange has also set an upper limit of 5 per cent for Panafic Industrials, Kavit Industries and Marg. Also, it fixed a circuit limit of two per cent for Hindustan Wires.
"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels... In the scrips (7) with effect from June 20, 2016," BSE said.
Shares of SBT have been on a rise after the Cabinet earlier this week gave go-ahead to merger of State Bank of India (SBI) and its associate lenders that would make the state-run lender a global-sized bank.
On a question on Chauhan being a contender for post of
chief executive at NSE, the BSE CEO said that the reports are speculative. The post of NSE managing director and CEO is lying vacant following a surprise exit of Chitra Ramkrishna.
There are an estimated 9,000 shareholders in BSE, where originally mostly brokers held shares. However, a host of foreign investors and domestic financial institutions have acquired shares over the years and the IPO will provide some of them an exit window to monetise their assets.
BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange.
Meanwhile, rival NSE had filed draft papers with Sebi last month for an estimated Rs 10,000 crore IPO.
The BSE issue is being managed by Edelweiss Financial Services, Axis Capital, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt, Motilal Oswal Investment Advisors, SBI Capital Markets and SMC Capitals.
Multi Commodity Exchange of India is the only listed bourse in the country.
