In order to curb excessive volatility, leading bourse BSE has revised the circuit limit for shares of five companies.
The new limits, which were changed on May 26, will be effective from May 29 and ensure stock prices do not fluctuate beyond a prescribed level during a session.
A circuit limit of 5 per cent has been set for Videocon Industries, as per a BSE notice.
Shares of Videocon Industries have plunged almost 53 per cent in the last five trading sessions amid reports of loan repayment worries.
The five-day decline has eroded Rs 1,777 crore from the company's market valuation which now stands at Rs 1,581.99 crore.
Besides, the exchange has set a circuit limit of 10 per cent for MBL Infrastructures, Visagar Polytex, Trend Electronics and Shri Krishna Prasadam.
MBL Infrastructures commands a market capitalisation of Rs 107.16 crore followed by Visagar Polytex at Rs 32.01 crore, Trend Electronics at Rs 10.84 crore and Shri Krishna Prasadam at Rs 8.25 crore.
Circuit filter mechanism is used by BSE to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.
The circuit filters will be changed from their existing levels in the four scrips with effect from May 29.
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