Leading exchange BSE has revised the circuit limit for the shares of nine companies in order to curb excessive volatility.
The new limits, effective tomorrow, will ensure stock prices do not fluctuate beyond a prescribed level during a session.
"Trading members of the exchange are hereby informed that the price band has/ have been changed from their existing levels in the... scrip/s with effect from December 20, 2017," the BSE said in a notice.
According to the notice, a circuit limit of 10 per cent has been set for Indo Rama Synthetics (India), Milkfood, Cranes Software International, Super Tannery, Godawari Power and Ispat, Manomay Tex India, and Mehai Technology.
Besides, a limit of 5 per cent has been set for STI India and 2 per cent for Maris Spinners.
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.
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