To curb excess volatility, leading stock exchange BSE today tweaked the circuit limit for share movement of 16 companies, including Transport Corporation of India.
The new limits, effective September 12, 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 for a scrip in check. It is the maximum fluctuation that is allowed in a stock, after which trading in it gets suspended if the permissible limit is hit in either direction.
In a circular, the exchange said it has set a circuit limit of 20 per cent for Transport Corporation of India.
It has also fixed a limit of 10 per cent for Archit Organosys Ltd, Alps Industries, Uniply Industries, Sunil Hitech Engineers, S V Global Mill, Kalpa commercial and Delta Industrial Resources.
A limit of 5 per cent has also been set for C&C Constructions, MBL Infrastructures, Dynacons Technologies, Patel Engineering, Century Extrusions, JRI Industries & Infrastructure and Neha International.
For CISTRO Telelink Ltd, the limit is set at 2 per cent.
"Trading members of the exchange are hereby informed that the circuit filters has/have been changed from their existing levels...In the scrips (16) with effect from September 12, 2016," BSE said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
